What's the Spot DCA (Martingale) bot and how do I use it?
Martingale is one form of Dollar Cost Averaging (DCA). The DCA (Martingale) bot is a trading bot that allows you to purchase crypto at multiple price levels if the price of the asset falls and aims to sell it for a profit if your target is reached. This bot aims to help you achieve a better average buying price by automatically placing additional buy orders if the price falls. If your profit target is reached, the bot automatically sells your crypto holdings. As with all bots, there's no guarantee that this aim will be achieved. The bot will only operate according to the parameters you set.
How does the Spot DCA (Martingale) bot work and how do I set it up?
Learn how to set up your bot below:
The bot begins by placing a buy order at a specific price. If the price falls, based on your settings, the bot executes another buy order, and this cycle continues until you hit your maximum number of orders, take profit level, or stop loss level.
Cycles: if the price reaches your take profit level, the bot sells your crypto holdings and then starts another cycle starting from the first buy order. However, if the price hits your stop loss level, the bot halts all activity and won't start a new cycle.Please note that DCA bots don't guarantee profits and may result in losses, especially in declining markets where the stop loss level could trigger. Additionally, the incremental buying approach may limit gains in rising markets.
What are the Spot DCA (Martingale) trading parameters?
You can create a DCA bot by setting the following key parameters:
Price steps: defines the percentage difference at which safety orders will be executed. For example, if set to 1%, the bot will place safety orders at 1% price drops.
Take profit (TP) target per cycle: specify the percentage profit the bot should aim for in each cycle. When the bot achieves this target price, it ends the current cycle, completes the order, and starts a new cycle as specified.
Initial order amount: the starting investment amount for each cycle, placed by the bot to initiate the DCA strategy.
Safety order amount: the amount used for each safety order within a cycle. These incremental orders are placed at your configured price steps to lower the average entry price.
Max safety orders: determine the maximum number of safety orders the bot can place per cycle. The actual number depends on available funds.
Other optional parameters:
Amount multiplier: set a multiplier to increase the size of each subsequent safety order as the price moves against the initial order. For example, a multiplier of 1.5 will make each safety order 50% larger than the previous one.
Price steps multiplier: adjusts the price gap between each safety order. This setting incrementally increases or decreases the gap between safety orders as the price changes. For example, with a 1% initial price step and a multiplier of 2, the safety orders will be placed at 1%, 3%, 7%, and so on (doubling the gap after each order).
Stop loss (SL): another optional setting to limit losses. If the price drops to this level, the bot will stop trading and sell all base assets at the market price.
How do I manage my Spot DCA (Martingale) bots?
From the trading bot dashboard, you can monitor and manage your Spot DCA (Martingale) bots:
Stop your bot: when you stop the bot, all pending orders are cancelled. You can choose to either sell any available crypto at the market price or keep it. In both cases, funds or crypto are transferred to your trading account.
View details: check the bot details page to monitor performance, including active cycles and profit/loss metrics.
Replicate setup: recreate a bot with the same parameters.
If you have any queries regarding our Spot Grid bot, visit here.