How to Get Started With Futures DCA Trading?

Dollar-cost averaging (DCA) is a strategy traders use to buy specific assets at set intervals to split their allocation at multiple price levels. If the market moves against their initial trade, this strategy allows them to get a better entry price. They can then close their position as soon as their 'take profit' target has been reached.
 

Users begin the trading cycle by selecting their risk profile via a series of parameters (or choosing from conservative, moderate, and aggressive pre-set parameters).
 

The strategy will start with an initial order that is programmed to execute a certain number of times. If the asset price drops by a designated percentage, the bot will execute a second trade that's a multiple of the first order. This cycle is repeated until the price reaches the maximum order count, the take profit level, or the stop loss level, as defined by the user. If the take profit target is reached, then the bot will run the next trading cycle.
 

Traders who believe the price of an asset will increase in the future tend to use this strategy to increase the size of their position — even if it is temporarily declining in value. They use the DCA approach to buy when they think the price is low and sell when they think it’s high.
 

For that reason, they tend to use it during volatile (significant but short-lived movements) markets, as well as in sideways markets they think will experience short-term rebounds.
 

The DCA strategy is well-known to traders but our bot offers them a few features that make it truly special:

DCA works in a continuous investment mode. A complete trading cycle must include an initial order and a take profit order.
 

The “take profit per cycle” order refers to the percentage of gains the trader hopes to earn for each trading cycle. A trading cycle ends when this take profit target is met. For example, if a trader sets a 10% take profit target and its average position cost is 1,000 USDT then, when the price reaches 1,100 USDT, the trading cycle will end.
 

1. On BloFin’s navigation bar, hover over Futures and then click on Trading bot.

2. The different trading bot strategies we offer will be listed here. Select DCA Bots and then click on Futures DCA.

 

 

3. Select AI Strategy then you will be allowed to choose between moderate, balanced, and aggressive risk profiles. You’ll then be able to enter the amount you want the bot to trade with. By clicking Create, the DCA bot will start functioning with pre-set parameters.

 

 

4. Select Manual if you want to set the parameters yourself. Enter the parameters such as the percentage of price steps, the take profit target per cycle, the initial and safety order amount, and the maximum number of safety orders.

 

 

5. Check the details on your order in the Order Confirmation window. If you want to proceed, click Confirm.

 

6. You can click "Details" in the "Bot Created" pop-up window to explore more information.