Customize Advanced Bitsgap DCA Bot Settings
This article will explain how to set up a DCA Bot using additional options in the "Manual adjustment" menu.
When setting up a new DCA bot, the "Manual adjustment" section allows you to customize your bot’s settings and personalize your trading strategy. To adjust settings, click on the [Manual adjustment].
Bot Settings
In the "Bot settings," you can choose the bot start settings and adjust your investments between the base order and the averaging grid.
Step 1: Bot start conditions
You can pick one of the two available options, which will determine how your DCA Bot will enter the trade.
Immediately
The "Immediately" option will create your DCA Bot right after you fill in all your settings. Your position will be open instantly with all required DCA orders.
By indicator signal
The bot will wait until indicator/s on the chosen timeframe generates a signal. This option will require some time before indicators generate a signal for entry, while your bot will be created and set in the waiting status.
- Combined signals last 30d: How many signals have been generated for the selected indicator on a selected timeframe for the past 30 days.
Edit indicator
To change your current indicator, click the [X] button right next to the indicator, and then select a new indicator by pressing on [Add indicator].
- Select any other indicator (if needed)
- Select the timeframe
- Click the plus icon
Note
You can add up to 6 indicators simultaneously; the cycle will be started based on the sum of their signals.
Step 2: Base order amount and type
Enter the size of the first order (aka initial position) in the traded currency. This amount will be your first investment in starting the DCA Bot.
Then select one of the two options that will specify what order type your DCA bot will be opened with.
- Limit order opens a position at a fixed price; however, the bot may start with a delay. This order will be placed at the best buy/sell price available in the order book at the beginning of the cycle.
- Market order opens the positions immediately, but the execution of a market order can lead to losses due to price slippage and buying/selling at a less favorable price than the current one.
Tip
Limit order is the default order type for your initial trade. This option is recommended because the bot buys/sells the assets at a specific price avoiding any losses due to price slippage.
In case of high volatility, when your limit order stays open or partially filled, the system will place the order again to ensure it is executed at the best rate as soon as possible.
Step 3: Averaging orders
DCA orders are trades that will average the buying or selling price of the traded asset and increase the position size.
At this stage, you'll be able to define the investment distributed among the specified number of averaging orders.
- Averaging orders amount - total investment in your DCA orders in the traded currency;
- Averaging orders quantity - number of averaging orders;
- Averaging orders step, % - percentage distance between averaging orders.
Active Orders Limit
This option allows you to limit the number of active averaging orders. This way, only a part of your DCA orders will be placed and added to the order book at the bot start.
When you set a smaller number of active trades than the total number of DCA orders, the orders placed at the lowest prices are going to be inactive (grey lines in the chart). Thus, for averaging orders at lower prices, funds are not reserved on your available balance, and you can use them for other transactions.
In the following example, we set a limit of 3 active orders while there should be 5 DCA orders in total. When we launch the bot, only 3 DCA orders will be placed, and 2 more will be pending. Once the bot fills a DCA order, the system will ‘activate’ one pending averaging trade. So, our bot will have 3 active DCA orders and a pending one.
Amount & Step multipliers
The Amount and Step multipliers are features allowing your DCA bot to average the position more efficiently.
The Amount multiplier is a progressive coefficient that increases the size of each subsequent averaging order. For example, each following DCA order will contain an amount increased by x1.3, as shown below.
Info
The coefficient of the Amount multiplier varies from x1 to x2. The greater the coefficient, the lower the average price.
The Step multiplier is a tool that helps to expand the grid of Averaging orders with increasing intervals between them to make fewer trades as the price moves against the first order. For instance, each following DCA order will be further away from the previous one by x1.3, as shown below.
Info
The coefficient of the Step multiplier also varies from x1 to x2. The greater the ratio, the lower the average price.
Position Take Profit & Stop Loss
This section includes settings that lead to closing your position.
Step 4: Take Profit (TP)
At this step, you determine under what condition the bot should close the position and fix the profit.
Regular Take Profit
The Take Profit order will be placed and filled at the chosen price change %.
There are four available options:
- Average price - The percentage of Take Profit is calculated from the maximum weighted average price of the position.
- Average price + Indicators* - The minimum profit level is calculated from the maximum weighted average price of the position, and the cycle will be closed with a signal of the selected indicators (when the price is above the minimum profit).
- Base order price - The Take Profit percentage is calculated from the base order price.
- Base order price + Indicators* - The minimum profit level is calculated from the base order price. The cycle will be closed with a signal of the selected indicators (when the price is above the minimum profit).
To see how to add, edit, and remove indicators, please revisit Step 1: Bot start conditions
Attention
When setting Take Profit with the indicators, it will be triggered only after the signal is generated and the TP percentage condition is met. This means that the specified price change percentage is the minimum profit level, which allows the system to ignore the indicator signals below the selected profit level.
Choose the order type that will be placed at the Take Profit trigger. The PNL metric reflects an approximate minimum profit based on the current Take Profit settings.
To see the difference between a Limit and a Market order, please go back to Step 2: base order amount and type.
Trailing Take Profit (TTP)
Take Profit will follow the current price at a certain distance specified in the settings. With TTP, you can maximize profits while the price moves in a favorable direction.
If you choose the Trailing Take Profit option, specify:
- Trailing TP Trigger, % - the level where TTP is activated. This percentage will be calculated from the Percentage of value.
- Price deviation, % - bounce percentage from the maximum (for Long) or minimum (for Short) price reached (after the TTP activation).
- Percentage of - a reference point for the Trailing TP Trigger. If you are unsure about the percentage options, we suggest you check the Regular Take Profit section.
As soon as the price reaches the Trailing TP Trigger level, all the DCA orders are canceled, and TTP is activated. From that point, the position will be closed at the Trailing TP level:
Trailing TP is set at the Price deviation distance from the maximum/minimum price reached since the TTP activation.
If the price moves in a favorable direction, the Trailing TP level will follow the price and stay at the Price deviation % from the maximum/minimum value. If the price reverts and reaches or goes beyond the Price deviation %, the Take Profit order is filled, and the position gets closed.
Note
Trailing Take Profit can be filled only as a market order.
Step 5: Stop Loss (optional)
On the opposite of the Take Profit order, where you can close the position with a positive outcome, you can also set a Stop Loss. This order will prevent your bot from any further losses and close the position when the price goes in the opposite direction.
The Stop Loss level is calculated based on the maximum weighted average position price. It always closes the cycle by placing and executing a market buy/sell order, depending on the previously selected strategy (Long/Short).
Once you set the Stop Loss Price change percentage, the system will calculate an approximate loss, considering all averaging orders.
Trailing SL
An extra option is available to give your Stop Loss even more functionality. The Trailing option will move the Stop Loss following the price every time the price is changed by an X%. It will move the Stop Loss by the set percentage. For instance, in our example, it will be moved by 1%, as shown below.
Attention
Moving the SL level results in canceling the averaging orders below it. On the chart, such orders will turn gray, and in the list of Active Orders, they will appear with the status "Canceled."
Risk Management
This section includes settings responsible for the complete DCA bot closure and risk management.
Step 6: Pump/Dump Protection
The Pump/Dump Protection will pause opening a new position if the price is increasing or decreasing too quickly. This option is enabled for all DCA Bots by default.
You can learn more about the feature in our article - Pump protection.
Step 7: Target total profit & Allowed total loss
Two options will result in the automatic closure of your DCA bot:
- Target total profit (similar to the Take Profit option);
- Allowed total loss (similar to the Stop Loss option).
When activated, in the field "Investment change, %," you can specify the profit or Loss percentage from the original investment at which you would like to fix and close the bot.
As soon as the Total PNL of your bot reaches the specified values, the system closes it by selling or purchasing the coins and transfers the bot to the "Bot History" tab.
Step 8: Max. & Min. prices
You can add extra options to your DCA bot, such as setting a price range that will allow you to avoid buying at the tip and selling at the dip or both.
By default, the DCA bot has no limits at which price to buy or sell your coin; it will always follow the price and start a new cycle when required. Adjusting the maximum or minimum price, or both will prevent that from happening - so you always trade in the price range you have set for your bot.
You may set the range levels by entering their price, determining their distance from the current rate (in %), as well as moving the Min. & Max. prices on the chart:
Step 9: Reinvest profit
You can add the accumulated bot profit to your DCA Bot investment with the Reinvest profit option. This way, you can increase the bot’s position and make sure all allocated funds are working toward your advantage.
After activating the Reinvest profit option, your bot will open each new cycle with the initial investment and the bot profit generated during the previous cycles. The additional investment will be distributed across the DCA Bot orders proportionally, so all the bot trades will increase in volume.
You can learn more about the feature in our article - Understanding the Reinvest Profit Feature for Maximizing DCA Bot Returns.
Now your DCA Bot is set and ready to be launched! 👍
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