DCA Configuration

Learn about available DCA configuration options and settings, such as symbol, amount, buy/sell triggers, stop loss, and take profit, and how this may align with users preferences and goals.

HawkAlpha DCA bots come with the following configurable sections & fields:

• Enter

  • Enter Type

    • Ask Price (uses current bid price via market data)

    • Custom Price (manual price entry)

  • Frequency

    • Run Once

    • ASAP (repeating)

• DCA

  • Base Order (BO)

  • Safety Order (SO)

  • SO Volume Scale

  • SO Step Scale

  • Price Deviation

  • Max Usage

• Profit

  • Target Profit %

• Exit

  • None

  • Market Order

    • Exit % from average

Configuring and optimizing the DCA bot settings depends on the users trading strategy, risk tolerance, and market conditions. There is no one-size-fits-all solution, but there are some general guidelines users can follow for each configurable field:

• Buy order (BO) share size: A buy order share size is the number of shares purchased for the initial order at the start of a DCA bot. It determines how much of the users funds are allocated to the first entry point.

A smaller share size means users have more funds left for safety orders, which can lower their average entry price and increase their profit potential. A larger share size means users have less funds left for safety orders, which can reduce their risk exposure and allow them to close the deal faster.

• Safety order (SO) share size: A safety order share size is the number of shares purchased for each safety order while the DCA bot is running. It determines how much of the users funds are allocated to the subsequent entry points.

A smaller share size means users have more safety orders available, which can help them catch the price dips and lower their average entry price. A larger share size means users have fewer safety orders available, which can help them avoid overextending their funds and reduce their immediate risk exposure.

• Safety order volume scale: Safety order volume scale is the multiplier for the safety order share size after each safety order is executed. It determines how much the safety order share size increases as the price drops.

A higher safety order volume scale means users buy more shares as the price drops, which can lower their average entry price and increase their profit potential. A lower safety order volume scale means fewer shares purchased as the price drops, which can conserve users funds and reduce their risk exposure.

• Safety order step scale: Safety order step scale is the multiplier for the price deviation percentage after each safety order is executed. It determines how much the price deviation percentage increases as the price drops.

A higher safety order step scale means the safety orders are triggered less frequently, which can reduce users risk exposure and avoid buying too high. A lower safety order step scale means the safety orders are triggered more frequently, which can lower the average entry price and catch the price dips.

• Price deviation: Price deviation is the percentage of price drop required to trigger a safety order. It determines how far the price has to fall from the previous order to buy more shares.

A higher price deviation percentage means the safety orders are triggered less frequently, which can reduce users risk exposure and avoid buying too high. A lower price deviation percentage means the safety orders are triggered more frequently, which can lower the average entry price and catch the price dips.

• Max usage: Max fund usage is the maximum percentage of available funds to use for the bot. It determines how much of your funds you allocate to the bot.

A higher max fund usage means users allocate more funds, which can increase their profit potential. A lower max fund usage means less funds are allocated, which can reduce users risk exposure.

• Target profit: Target profit is the percentage of profit to aim for before closing the deal. It determines how high the price has to rise from the average entry price to sell the shares.

A higher target profit means users wait for a higher price to sell, which can increase their profit potential and allow them to take advantage of market rallies. A lower target profit means users sell sooner, which can reduce their immediate risk exposure and allow them to compound their profits faster.

• Stop loss: Stop loss is the percentage of loss to tolerate before closing the deal. It determines how low the price has to fall from the average entry price to sell the shares.

A higher stop loss means users wait for a lower price to sell, which can reduce their risk exposure and allow them to recover from market dips. A lower stop loss means users sell sooner, which can increase their risk exposure and prevent further losses.