DCA Bot Guide
What is a DCA Bot?
A DCA (Dollar Cost Averaging) bot automatically buys or sells an asset at regular intervals. Instead of trying to time the market, it spreads your entries over time — reducing the impact of volatility on your average entry price.
How it Works on Gridera
- Choose direction — Buy Regularly (long) or Sell Regularly (short)
- Set amount — How much USD per order (minimum $15)
- Set interval — Every 1h, 4h, 12h, or 24h
- Set budget — Total budget limit
- Start — Bot places orders automatically at each interval
Safety Orders
Safety orders are extra buy orders that trigger when the price drops after your initial entry. They help you lower your average entry price.
Settings:
- Number of safety orders — How many extra orders (e.g., 3)
- First trigger % — Price drop to trigger first safety order (e.g., 5%)
- Step between orders % — Distance between each safety order (e.g., 5%)
- Volume scale — Each safety order grows by this multiplier (e.g., 1.5x)
Example: You buy at $100. Safety orders trigger at $95, $90, $85 with increasing size.
Trailing Take Profit
Instead of selling at a fixed price, trailing TP tracks the highest point and sells when the price pulls back by your set percentage.
How it works:
- Price rises 20% from your average entry
- Trailing TP tracks the peak
- You set 1% pullback
- When price drops 1% from the peak, bot sells
This lets you capture more upside while still protecting profits.
DCA vs Grid Trading
| Feature | DCA Bot | Grid Bot |
|---|---|---|
| Entry style | Regular intervals | Price levels |
| Best for | Trending markets | Sideways markets |
| Complexity | Simple | Moderate |
| Safety orders | Yes | No (uses TP instead) |
| Trailing TP | Yes | No |
Tips
- Start with conservative settings — low amount, long interval
- Use safety orders to improve your average entry
- Trailing TP works best in volatile uptrends
- Set a total budget to limit your exposure
- Monitor your bot regularly — DCA doesn’t mean “set and forget”
Risk Warning
DCA does not eliminate risk. In a prolonged downtrend, you’ll keep buying as the price falls. Always use a budget limit and stop-loss to protect your capital.
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