Home DCA bot What is a DCA bot?

What is a DCA bot?

Last updated on Aug 16, 2024

Trading bot

Just configure the trading parameters, and the trading bot can automatically execute the deal. Compared with manual trading, using the trading bot provided by HXR Trade also has the following advantages:

  1. Low threshold for use. The trading bots provided by HXR Trade are based on cloud services, do not require programming knowledge, do not need to deploy servers and install software, and can be configured and run at any time.

  2. The strategy is automatically executed to overcome human greed. The bot will always trade according to the plan, without fear or greed , and will not miss trading opportunities

  3. The bots don't rest. The crypto market is never closed, and bots can configure 24*7 transactions at one time to earn profits

  4. Precise control of transactions. Edit the bot anytime the market changes, help the bot when trades are bad, edit active trades and close positions at market prices, etc.

DCA and Martingale

DCA is the abbreviation of "Dollar-cost averaging". It is a trading strategy used to average your purchase price or similar to Martingale

  • DCA is a very mature investment strategy. If DCA is a bit unfamiliar, then his other name, "Scheduled Investment", is familiar to almost every investor and widely recognized by investors

  • The Martingale strategy was first used in casinos, and every time you "lose money", you increased the stake by a multiple of 2 until you won. With unlimited funds, this is a winning strategy, because no matter how many times you lose, as long as you finally win, you can win back with a profit. But the reality is that the vast majority of traders have limited funds, and each 2x increase will quickly run out of funds, and investors will not be able to bear it if they continue to fall

Combining DCA with martingale strategy, there comes the DCA bot šŸ¤–

How the DCA bot works

The core working principle of the DCA bot is to "build a position in multiple times and take profit at one time"

"The assumption of using DCA bot trading is that the price of digital assets will eventually rise, so the DCA strategy is suitable for trading assets that you are optimistic about and familiar with.If the price of the asset falls and you continue to invest more to reduce the cost of buying it, you will profit faster when the price rises again"

When you actually use the DCA bot to trade, we will not add to the position infinitely, and the multiple of each adding position is not necessarily 2 times, which is very flexible

As shown in the figure below, the maximum number of adding positions of this bot (the maximum number of safety orders) is 3 times, and the investment volume each time is 1 time that of the previous time

20.jpgCreate DCA bot- New- Experss

DCA bot performance

DCA bots can go long and short in the spot market and futures market, and have good profitability no matter in bear market, bull market or volatile market.

HXR Trade will select the bots with excellent performance and display the complete information of the bots in real time. You can choose to copy the bot directly, or reference theseĀ  to create different bots.

Quick start- Copy bots