Increase Your Trading Strategy Options with Active Orders Limit on DCA Bots
The Active Orders Limit feature on DCA Bots provides traders with increased flexibility and control over their trading strategy. By limiting the number of averaging orders placed simultaneously, this feature allows traders to avoid overcrowding the order book while still positioning for profitable trades. This method not only conserves balance but also ensures that the bot’s funds are used efficiently.
Overview
- What is the Active Orders Limit Feature?
- How to Enable Active Orders Limit for the DCA Bot
- How Does the Active Orders Limit Feature Work?
- Important Considerations for Active Orders Limit
What is the Active Orders Limit Feature?
The Active Orders Limit feature allows traders to restrict the number of averaging orders that are active at the same time. Instead of placing all orders at once, orders are created as necessary when the price reaches the closest DCA level to the position. This dynamic approach helps keep your balance available for other trades and minimizes the risk of overcommitting to one position.
Key Benefits:
- More Control: You can limit the number of active orders, which helps you manage risk and balance usage.
- Efficiency: Active orders are placed only when required, leaving funds available for other trading opportunities.
- Visual Cues: Inactive orders are shown as gray on the chart, helping you track which grids are currently active.
How to Enable Active Orders Limit for the DCA Bot
To activate the Active Orders Limit feature while creating a bot, follow these steps:
- Access Manual Adjustment section and Open the DCA bot’s settings.
- Enable the Feature: Toggle on the option to enable Active Orders Limit.
Important Note: Once the DCA bot has started, you cannot activate or modify the Active Orders Limit. Be sure to set it up during the initial configuration.
How Does the Active Orders Limit Feature Work?
When you create a DCA bot, the initial investment includes both active and inactive averaging orders. However, only funds for active orders are reserved from your available balance, leaving funds for inactive orders to be used for other trades until they are activated.
Visual Representation:
The Active Orders will be shown as green on the chart, and any Inactive Orders will appear gray. This helps you easily track which orders are currently active and manage your balance efficiently.
Example:
Let's consider the following setup for the DOT/USDT trading pair:
- Available balance: 15,016.84 USDT
- Investment amount: 5,000 USDT
- Averaging orders: 10
- Inactive orders: 5
In this case, the amount of funds reserved for the averaging (green) orders will be calculated as follows: 82.12 USDT + 106.75 USDT + 138.78 USDT + 180.42 USDT + 234.54 USDT = 742.61 USDT.
As the Active Orders Limit is activated, funds will only be reserved for the active (green) orders. For example, 742.63 USDT would be reserved for the active orders, while funds for the inactive (gray) orders remain available for other trades. As soon as an active order is executed, an inactive order is placed in the order book.
Important Considerations for Active Orders Limit
- Stop Loss: If you activate the Stop Loss feature, it will be placed under the entire grid (for a Long DCA bot) or above it (for a Short DCA bot). Once an order is executed, it will be labeled "Canceled."
- Balance Insufficiency: If all active orders are executed and your balance is insufficient, inactive orders will show an error message ("Not enough balance"). You can manually restore these orders once your balance is sufficient.
What's Next?
- DCA Futures Bot: Explore how to leverage DCA strategies for futures trading with high precision.
- Advanced DCA Bot Settings: Unlock advanced configuration options to optimize your trading strategy further.
Need Assistance?
If you encounter any issues or have questions, don’t hesitate to contact the Bitsgap Customer Support Team.