DCA BOT
Getting Started with the Reins DCA Trading Bot
Introduction
Dollar-cost averaging (DCA) is a strategy to divide your investment across periodic buy or sell trades to get a better average entry price. This allows you to reduce the impact of volatility and price change on the overall position.
The main idea of the DCA Bot is the repeated purchasing or selling of a coin in small amounts at price levels that are located evenly from each other. This approach minimizes the market impact on your open position.
When do I need to use the DCA Bot?
You want to use the DCA Bot when you need to cycle your trading with powerful technical signals and effective risk management tools, allowing you to automate your daily trading routine completely. Our DCA Bot is a Swiss Army knife for automated trading, which outperforms the market on any time scale, whether you are a long-term investor or an intraday trader.
Key Takeaways
Here is a quick overview of what the DCA Bot can do in particular:
Finding the right moment to enter and exit a trade based on one or more technical indicators.
Building a DCA orders grid for every cycle to get a better average entry price.
Reducing the trade size when it is needed for safe recovery.
Limiting your risks and drawdowns while letting your profits flow and grow.
Getting started
When creating a DCA Bot, you can open a Long position.
Long: buying position where the bot will trade a base currency to accumulate profit in a quote currency.
Your bot will open a position by buying the base currency. Below that trade, it will place the DCA (buy) orders and the Take Profit (sell) order above. When the price rises, your bot sells all the purchased base currency at the Take Profit level, generating profit. It means that the cycle is over, and the bot opens a new one with the initial investment amount.
How to create a Long DCA Bot
Step 1: Select a bot type
To start a new DCA Bot, click the [Start new bot] button in the Bots page's top menu.
From the list of all available bots, select [DCA Bot].
Step 2: Customize the bot’s settings
On the right side of your screen, a menu for creating your first DCA Bot will be shown, where you can select the exchange, the pair, the strategy, the investment and set the advanced settings if you want to customize them to your strategy.
Start by selecting an exchange and a pair. Click the “Exchange” window to choose an exchange, then “Pair” to set the trading pair. Once this is done, move to the following step.
Enter the total investment you want to operate with or use the slider to specify the percentage based on your available trading balance. The "Investment" field shows an approximate investment in your quote and system currencies.
"Available for bot use" is the balance the bot will consider for trading, which will display your current balance.
You can also customize your bot’s advanced settings in the "Manual Adjustment" section. Otherwise, your bot will be launched with the following default parameters:
Immediate bot start;
Market order as your base order type (opening the position) to ensure that base coins are purchased at the best possible rate and avoid price slippage;
2 DCA orders with a step of 0.5%;
The amount and step multipliers at the x1.3 ratio;
Limit Take Profit order based on the weighted average buy price.
Step 3: Bot overview
This is the final step before launching the bot. Here you can review all the selected settings.
Preview
Exchange;
Trading pair;
Strategy;
How much you have invested in the bot;
Base order settings (size, type);
DCA orders settings (size, quantity, step);
The Amount and Step multipliers;
Take Profit and Stop Loss details (price change percentage, order type);
If changes need to be made, go back by clicking on the arrow. Otherwise, hit the [Start bot] button to get started.
Bot’s performance
You can always track your bot's results in the detailed "Performance" window. This will help you better understand your bot's performance and results, as well as get more detailed information about each transaction. It can be found on the right-hand side after clicking on a running bot:
Here, you can see the overall bot profit with fee (We will consider only the buy order fee) , bot profit without fee (Without considering of buy and sell fee) and position PNL, trading time, and the number of completed transactions. It also shows the ratio of the quote and base currency in open orders and their current value.
Bot orders
You can find more information about your completed and open bot trades in the "Bot orders" tab. To access the tab, click [Bot actions] and select the [View details] option.
The “History” tab will display specific details on all the trades your bot has already completed. Here, you will see the following information:
The time when each order was filled;
Order side (buy or sell);
Action (order type);
Order amount in the base currency;
Order price;
Exchange trading fee;
Profit per each trade;
Total profit considering the applied trading fees.
Open orders tab
If you want to check the status of your bot open trades, head to the "Open orders" tab:
In the "Open orders" tab, you can find more info about the number of open orders, their time, side, type, amount, price, and status.
Modify bots
Whenever you want to adjust settings, select the bot you need and press [Bot actions] on the right-hand side.
Bot Actions Options
Manual position averaging - invest additional funds in the cycle to influence the current bot position.
To average the position, you will specify and check:
Amount for averaging;
Available balance;
Current and new estimated position size in the base currency;
Current DCA price.
Modify bot - adjust some bot settings.
After choosing this option, the Manual Adjustment section will be opened. Here you can modify position Take Profit & Stop Loss.
If you change the "Position TP & SL features, the modifications will become valid in the current order.
Once all the necessary changes have been made, press [Confirm] to proceed.
Close bots
To close a DCA Bot, select the one you need and navigate the mouse cursor to the [Stop Bot] icon.
On your right-hand side, you will see a panel with your bot's current status and options for closing the bot.
Stop Bot Conditions
Cancel all orders and keep the base currency. This option will close all your open orders. The current amount of the traded currency will be transferred back to your available balance.
Sell at market price.. By choosing this option, all the bot base currency will be sold at the market price, leaving you the results highlighted in the Total PNL column.
After deciding how you want to close your bot, press the [Confirm] button. This will initiate the process of shutting your bot down.
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