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DCA Bots — Dollar-Cost Averaging on Autopilot
Overview
DCA bots automate dollar-cost averaging with the option to add safety orders on dips. Learn how to configure deals, safety orders, and take-profit targets for consistent accumulation. Proper sizing is critical — use our position size calculator to ensure you have enough capital reserved if all safety orders trigger. Pair your DCA strategy with clear risk management rules to protect against prolonged drawdowns. Browse the trading bots hub for more automation strategies.
Key Takeaways
- Base order: initial buy. Safety orders: additional buys at pre-set lower prices to average down.
- Each safety order lowers your average entry — the take-profit target becomes easier to reach.
- The more safety orders you set, the more capital you need reserved for the worst-case scenario.
- DCA bots work best on assets you're fundamentally bullish on long-term — they increase position size on dips.
Practical Tips
- Calculate the total capital needed if ALL safety orders trigger before setting up the bot.
- Use 1-2% price deviation between safety orders for volatile assets; 0.5-1% for stable pairs.
- Set take-profit at 1-3% for frequent cycling; 5-10% for larger, less frequent swing trades.