DCA bot and my experience with it!

14 jul 2023

Hey there, fellow crypto enthusiasts! Welcome to my blog, where we break down the complex trading world into bite-sized knowledge nuggets.

Today we're diving headfirst into the exciting strategy of Dollar Cost Averaging (DCA) and how it works with trading bots.

Dollar Cost Averaging Demystified

Alright, folks, let me break it down for ya. Dollar Cost Averaging (DCA) is an investment strategy that's all about taking it slow and steady. Instead of going all-in at once, DCA has you regularly buying a particular asset, like bitcoin, in small chunks over time. It's like sipping your favorite beverage gradually instead of chugging it down in one go. We want to savor those gains, people!

Smooth Sailing through Market Turbulence

Here's the kicker, my friends. DCA helps you ride out the crazy rollercoaster of price fluctuations. Picture this: Bitcoin's price takes a nosedive. Ouch, right? But fear not! With DCA, you're buying during the dip, baby! So when the price inevitably bounces back up, you'll sit pretty and reap the rewards. On the flip side, if the price skyrockets, well, you might have some losses when it takes a breather. But fear not again! Since you're investing small amounts regularly, you're not putting all your hard-earned cash at risk. It's like having a financial safety net during those market downswings. Sweet, isn't it?

What figures and patterns do I recommend using?

Firstly as a continuation pattern, I would like to search for a triangle, flags, and wedge.

https://www.tradingview.com/x/vTuAbX79/



Also, you can catch the price squeeze and the volume spike to catch the volatility on it.

For example, the last setup of that pattern was on Matic.


How I automated trading with the DCA strategy

I try to be smart with my time, and after figuring out how DCA works, I regularly practice automation using this strategy.

Here are my tips and personal configurations: so, if you want to trade with small leverage, 3x-6x will be enough for you. The maximum risk is 10x.

Try to make simple trades, and think about trends at the beginning of your charts. And then you will start to win.

Here are the results of trading with the DCA Futures bot



As you can see, it's possible to make money with bots. However, it requires understanding of how they work and knowledge of coin analysis. The case is that you free up your time for other things.

Also, note that my advice is not a call to action. Everyone is responsible for their own trading decisions.


Questions:

New trading strategies.

Do I analyze myself with VSA indicators, like BOS? ( Break out structure)


I often use wedge and triangle patterns with significant consolidations in my work. Once I identify these patterns, I wait for a push of the price increase resulting from the liquidity and then activate my trading bots. This way, I actively participate in the market and observe how my strategies perform.

Are you interested in learning more about the settings you can use with the DCA BOT? I'll be happy to share that information with you next time.

Hang tight for more mind-blowing posts where I uncover various investment strategies and financial wizardry to help you conquer your financial dreams.

I wish you successful trades!