Strategy lesson
DCA Bot lesson
DCA means dollar-cost averaging. A DCA bot adds planned virtual orders after price drops, which lowers average entry but increases total exposure.
Initial investment starts the position.
Price-drop percentage decides when the next order appears.
DCA order amount controls each added buy.
Maximum DCA orders limits total capital.
Average entry changes after each order.
Take-profit and stop-loss are planned exit references.
| Step | Order amount | Price level | Total capital |
|---|---|---|---|
| Initial | EUR 100 | 100% | EUR 100 |
| DCA 1 | EUR 50 | 95% | EUR 150 |
| DCA 2 | EUR 50 | 90.25% | EUR 200 |
| DCA 3 | EUR 50 | 85.74% | EUR 250 |
| DCA 4 | EUR 50 | 81.45% | EUR 300 |
Repeatedly buying while price keeps falling can increase losses and use more capital than expected.