What Is Bitget’s DCA Strategy?
Dollar-cost averaging (DCA) is an investment strategy leveraged by many investors to hedge against volatility and unstable market sentiment. If you’re not familiar with this term, check out our brief introduction to DCA.
Bitget DCA strategy is a smart strategy that automatically makes investments for you. All you need to do is set a base order price. It helps you plan how and when to trade, and the rest is left to our trusted strategy bots. Our DCA strategies work for both spot and futures and are available in both directions. We will briefly explain how our DCA strategy works based on the following chart by using normal DCA/long DCA as examples.
Let's say the price is sitting at P0 and you predict the price will fall in the future to about P3, after which you believe a rebound may occur and the price may rise to P4. To better seize this opportunity, you can now create a DCA strategy for spot or futures and place a base order at the price of P0. Even if the price rises immediately afterwards, you will still profit from your base order. And if it continues to fall, you can place orders at P1, P2, and P3. This method allows you to follow market trends and reduce costs as well. If the asset falls to P3 and then goes up to P4 as you predicted, your orders a t prices P0, P1, P2, and P3 will be sold at the price P4, allowing you to take more profit. You can also set your target profit and stop loss as a percentage of your base order or last safety order. Your DCA strategy will terminate upon reaching your target profit or maximum loss.
Base order price
The base order price is the asset price at which you place your first order. Set it at the market price if you wish to make a purchase right away but beware of slippage. Alternatively, you can set a limit price to avoid slippage but your order may take some time to close.
Base order size
The amount of your first order. All your safety orders will be placed relative to this number.
Price of the first safety order drops
The asset price drop for your first safety order. Can be set to 0.1% to 10%.
Interval multiple of the safety order price
The ratio between e ach price drop and the former. Can be set to 0.1 to 10.
Multiplier of safety order amount
The ratio between the amount of each safety order and the order before. Minimum 0.1. For example, if you set this multiplier at 1.5, then the second safety will be 1.5 times the size of your first safety order, and so on and so forth.
Max. number of safety orders
The total number of safety orders you plan to place. Can be set to 1 to 100.
The total amount required for your strategy. For futures trades, this is the amount of margin required.
This is the amount of profit you plan to make. It can be set as a percentage of your base order size or total volume. Can be set to 0.1% to 100,000%. For example, if the base order size is $10, and your three safety orders are $20, $30, and $40, respectively, then the total amount is $100, the take profit rate is 10%, and the target profit is $10.
You can change your target profit while your strategy is active.
This is the maximum loss you can afford. It can be set as a percentage of your last safety order. References for stop loss: The price of the last safety order is set by users.
You can change your stop loss level while your strategy is active.
References for Orders
Once you have filled in all the parameters correctly, all the orders you will be placing will be displayed below. These numbers are for references only and actual orders and prices may vary.
Sell on termination: Check this box if you wish to sell all assets upon Normal DCA strategy termination.
Buy on termination: Check this box if you wish to buy back all assets upon Reverse DCA strategy termination.
Close on Termination: Check this box if you wish to close all positions upon Futures DCA strategy termination.
How to Activate DCA
Select desired strategy and coin pair
Click here to enter our DCA Strategy page and select your desired strategy (spot or futures) and coin pair.
Select the Strategy Orientation
If you think the price will rise or rise after falling, you can select Normal DCA for spot or Long DCA for futures.
If you think the price will fall or fall after rising, you can select Reverse DCA for spot or Short DCA for futures.
Select Fullscreen Mode for a more detailed view of all parameters.
Starting to Trade
Select Quick Create
If you are experiencing our strategy trading for the first time or are not familiar with DCA, you can click Quick Create and we will launch a DCA Strategy with our default parameters.
Base Order Amount
This is the only parameter you need to fill in when using Quick Create. We will calculate the minimum base order amount required under the default parameters. You can also change it based on your preferences.
References for Orders
You can preview all the order details including asset prices and quantities here.
If you are familiar with how our DCA strategy works, you can choose manual creation to customize as many parameters as you prefer. These parameters include: base order price, reference for safety orders, degree of drop/rise to open safety orders, safety order step scale, base order amount, safety order multiplier, max safety order count, strategy cycling times, take profit reference, target take profit, stop loss, etc.
After filling in the parameters, we will tell you the amount of asset/ liquidity required for this configuration, as well as all details regarding the orders you’re about to place.
1. Where do the available strategy assets come from?
Available spot strategy assets come from your spot account, and futures strategy assets come from your futures account.
2. Under what conditions will the strategy terminate?
- You can click the termination button any time to terminate any strategy yourself.
- Terminating any order that is part of your active strategy will terminate the strategy itself.
- When you have achieved your target profit or maximum loss, your strategy will be automatically terminated.
- When the coin pair is delisted, all your active strategy regarding that coin pair will be terminated.
- If you reached the maximum order limit when you placed orders manually, your strategy will also be terminated due to order cancellation.
- If your futures account is at high risk and position reduction or liquidation is triggered, your active strategy will also be terminated.
- You will not be able to activate strategy without sufficient balance or margin.
3. Are the leverage ratio and position mode synced with my other futures positions?
Yes, they are. Changing one number will automatically change all other numbers for your DCA strategy as well as other futures positions.
4. What is the recommended maximum leverage?
This is the maximum leverage ratio you’re allowed to take under with all the parameters you just filled in. Cryptocurrency markets can be volatile so we strongly recommend you adjust your leverage ratio based on your risk tolerance.
Check out Bitget’s DCA Strategy: A Hands-on Tutorial for a more detailed explanation on configuring and launching your DCA Strategies.
Can’t wait to test it out? Start trading with Bitget DCA Strategy now!
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