DCA Strategy Explained
To avoid confusion and overcomplication, in this article we’ll cover DCA bot for long strategy which first buys cryptocurrency and later sells it at a higher price. For the short trading bot the first order would be sell order, and the TP order would be a buy order at a lower price.
The dollar cost averaging bot places the first buy order, and extra orders if the price goes into the opposite direction of the strategy chosen. For all the buy orders previously places only one take profit order is placed. The price of take profit is recalculated with every new buy order, so that the profit for all the orders places would equal the TP parameter you set.
How the DCA bot works?
1. Trading bot places First Order (buy order) as a limit order.
2. After the first order is executed bot places Take profit order and Extra order based on the First order price execution.
3. If the First Extra order takes place and is executed, the crypto bot takes the Take profit order of the first order off the exchange and places a new TP order (sell order for long strategy, buy order for short strategy) with the recalculated price for both orders. He also places second extra order two steps (specified Step of Extra Order) below First Order Price. When the second Extra Order is executed, the same cycle is repeated. No more than 1 buy and 1 sell orders are on the cryptocurrency exchange simultaneously.
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How to create a DCA trading bot?
Let's go through the process of creating a DCA bot on TradeSanta.
- To start, you'll need a previously set up access with the API Keys entered. Once that is done, go to DCA BOTS in the menu section on the left and click create bot.
- Select an access point, then decide on a pair you want to trade and strategy: whether you want to long or short a coin. You always receive profit in the quote currency, displayed as the second currency of the pair.
- Once you select the pair, the trading view graph appears, and the data will help you decide on the bot’s settings.
- The take profit box indicates the percentage of a price increase at which the bot will sell the coins and close the trade.
- The step of extra order indicates the percentage of price fall at which bot will place another order to average the buying price.
- Max count of extra orders defines the maximum number of orders placed in one trading cycle.
- When specifying your order size, pay attention that Order volume is larger than the minimum order size of your exchange.
- The next field specifies the number of successful deals completed after which the bot will be turned off. Leave this field blank, and the bot will run continuously.
- You may increase the precision of the entry point by turning on Signals and technical indicators.TradeSanta provides opportunity to use signals based on Bollinger, MACD, RSI indicators. Preset TradingView Signals that are based on TradingView Screener, as well as custom TradingView signals (that you can connect from your TradingView account to bots on TradeSanta via webhooks) are also available for traders to use as deal entry signals.
- Martingale is a multiplier for each new order placed and is a high-risk option for experienced traders only.
- Max order price is an optional field that sets a limit above which bots won't start a new trading cycle. You may enable the stop-loss option to close the position with a certain amount of loss reached.
- The calculator indicates if you have enough coins on your balance to execute a trade according to your settings. The bot name is generated for you, so all that is left to do is save and turn on your DCA bot.
Access Choose a previously connected exchange to trade on.
Strategy With long strategy the bot will buy coins with quote currency (second currency of the pair) and sell them later at the higher price. Short means the crypto bots will sell the base currency (first currency of the pair) you have and buy it later at the lower price.Long means buying coins with quote currency and selling them later at the higher price. Short means selling the base currency you have and buying it later at the lower price.
Pair You see trading pairs in format as you see it on exchanges BaseCurrencyQuoteCurrency - so if you see pair XRPETH, that means you will use ETH to buy XRP with it, and will get profit in ETH.
Once you select a pair you’ll a Trading view chat with some calculated Trading parameters
Current Market Price the pair’s current rate at the crypto exchange you selected(Video) Review TradeSanta Automated Crypto Trading Platform Bitcoin Grid Bot Setup on Binance US Exchange
Your balance The deposit of the coin needed for the first order on your exchange account
Dynamics The change of the selected trade pairs rate over the past 24h
Volatility the assets change in 24 in % from the lowest price of the highest price.
TakeProfit (%) defines how much profit you want to make when selling the coins you bought.
Step of Extra Order (%) indicates by what percent should the price drop for the extra order to be executed in case of the long strategy and vice versa for the short strategy.
Max Count of Extra Orders (%) Maximum number of extra orders the DCA bot can execute within one cycle. This parameter multiplies this number by the volume of extra orders and adds first order volume, and you will get the total sum the bot can invest in buying the coin.
Order Volume Number of coins the bot will buy at the start. The amount is set in quote currency (second currency of the pair) for the long strategy and base currency for the short strategy.
Max number of cycles is the number of successful deals after which the crypto bot turns off and stops trading until you launch it again. Martingale increases the volume of each extra order by a coefficient from 1.05 to 2 to regain the value lost. Note, the option is of high risk and is advised only for experienced traders.
Max order price the price above which bot won’t start a new cycle.(Video) Latest Review Of TradeSanta Crypto Trading Bot for Spot And Futures Market | @tradesanta5861
Stop Loss will be activated when your loss in the current deal reaches the value you set in settings.
MACD - Bot will search for an optimal entry point based on MACD of a trading pair for the past 100 minutes. MACD is an indicator used to confirm the trend.
RSI - TradeSanta's bot will find an entry point based on RSI of a trading pair for the past 100 minutes. RSI is a momentum indicator signalling if the stock is oversold or overbought.
Bollinger signal - Santa's crypto bot will search for an optimal entry point based on the Bollinger bands of a trading pair for the past 1.5 hours on a 5-minute timeframe.
Save only/ Save & Turn On Turn on the bot and start a new cycle at once (or until it receives the signal from TA indicators if you’ve market any of indicators and/or the price is lower than the Max price limit if you’ve set one) or save the bot and start trading later.
DCA bot’s analytics
On the right part of the page you may see the main trade parameters that will help you track the cryptocurrency bot’s performance.
Total traded volume is a sum of all buy orders in quote currency traded by the bot. Trades show the number of buy and sell orders executed on the exchange (it is like trade history that you see on exchange). Please, be advised that the bot counts partially filled orders separately (each part is a trade). Let’s say you have an order volume of 50 USDT and the bot executed first order partially for 30 USDT and then bought 20 USDT. In the Trades section it will be displayed as 2 buy trades although both trades were executed to match a single 50 USDT order at a certain price level.
The bot progress table shows Unsold volume, Unrealised profit/loss and Current rate as well as the chart that shows where the latest Buy and Sell orders are placed.
Unsold volume is the total value of your position in base currency. It equals the sum of First order and Extra Orders you’re currently holding for which Sell orders haven’t been executed.(Video) Best Bitcoin Trading Bot 2021 | TradeSanta Crypto Bot made me how much in 2 weeks?! | Trading Bot
Realized profit is the profit you received after sell orders were executed for the whole cycle.
Unrealized profit/loss (liquidation profit/loss) shows you how much you will gain or lose from the total investment you made in this cycle if you exit the position right now. Unrealised profit/loss is calculated as realised profit gained during bots operation + (quote you will receive if you sell coins now - quote you spent initially on buying those coins at the time of purchase) - trading fee.
Active Orders table shows orders that were placed but not executed, but no more than 2 orders simultaneously (it is like an open orders table on the exchange).
Trade History shows all orders that have been filled fully or partially (i.e. like trade history you see on the exchange). Be advised that trade is not equal to order in the sense that if the order was executed in 3 parts, it will be shown as 3 trades in this table.
Stop If you stop the bot, all active orders on exchange will be cancelled, the bot position (the number of extra orders executed, the amount of coins bought) is saved. When you turn it on again, all the previously canceled orders will be placed again.
Stop and Sell coins You may choose the option to force stop the deal. In this case, the robot will liquidate the position and sell the coins it previously bought. You won’t be able to continue the cycle again.
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What are the strategies on TradeSanta? ›
Currently, there are 2 strategies on TradeSanta: long and short. Your choice between them defines, whether your bot will buy coins and sell them later or vice versa.What is best strategy for crypto trading? ›
Arbitrage is one of the most popular strategies on the market. It involves buying a coin on one platform and selling it on another using the difference in price between the two platforms. Like scalping, arbitrage tends to generate small profits.How good is TradeSanta? ›
Overall, TradeSanta users are happy with the support they receive. TradeSanta provides in-platform support via live chat where they are usually quick to respond. You can also take your questions to the TradeSanta Telegram group which is very active.How do I withdraw from TradeSanta? ›
You shall make a written withdrawal request to firstname.lastname@example.org The request shall be submitted from the same e-mail as listed in your account; 3.2. After submitting the request you shall not activate your subscription package and shall not start using any Services.
- Comparison of Crypto Bot Trading Apps.
- #1) Pionex – Recommended Crypto Bot.
- #2) eToro.
- #3) NAGA.
- #4) CoinRule.
- #5) CryptoHopper.
- #6) TradeSanta.
- #7) Shrimpy.io.
DCA (Dollar Cost Averaging)
DCA is a popular strategy for both beginner traders and experts alike. Instead of investing all your money into a specific asset at once, you divide your investments into smaller amounts.
Here's all you need to learn regarding generating income from day trading if you're only commencing out with cryptocurrency. By investing roughly $1000 while monitoring a 10% increase solely on a single combination, it is possible to earn $100 every day in bitcoin.What time is best to trade crypto? ›
Prices are lower when the market is less busy. Although you can trade cryptocurrencies at any time of day, the market is more active during typical work hours and less active early in the morning, at night, and on the weekends. Generally, cryptocurrency prices start low on Monday and rise throughout the week.Can crypto trading bots make you rich? ›
If the bot doesn't lose any trades in this kind of trading month, the trader could potentially earn 20% each month for an all-in strategy. This means that an account with $10,000 will earn up to $2,000. A trading bot can theoretically make a trader a billionaire.Who owns TradeSanta? ›
Who owns and operates TradeSanta? A group of experienced crypto traders came together and established TradeSanta in 2018. The company CEO is Polina Demchuk. It has its headquarters in Yerevan, Armenia, and is a registered company in the BVI (British Virgin Islands) with the number 2069399.
Who is the best crypto trader app? ›
List of Top Cryptocurrency Apps
TradeSanta is a crypto trading software that allows traders automate well-known strategies. The platform provides a user-friendly interface and is suitable for beginners in crypto trading. TradeSanta is FREE.How do I convert crypto to cash and withdraw? ›
- Decide which third-party broker exchange you want to use. ...
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- Visit crypto.com/exchange and select the Log In button (upper right-hand corner).
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You can use trading bots (made with python code) to make money. This is the reason why more and more hedge funds, big financial companies, and banking structures are using these trading bots. You can expect 0.6-1% of profitability in a low volatility market. In that case, you can expect to earn around 20% every month.Who is the most profitable crypto trader? ›
- How to become a successful crypto trader.
- The top 10 crypto traders to follow.
- Changpeng Zhao - @cz_binance (net worth of $96.5 billion)
- Satoshi (net worth of $45.8 billion)
- Brian Armstrong - @brian_armstrong (net worth of $10.4 billion)
In many cases, they must still make investment decisions such as when to buy or sell. A crypto bot is not a get-rich-quick solution for an investor unwilling to put in the time and effort necessary for success. While bots can help execute orders, they are not a substitution for a solid investing strategy.Which coin is best for daily trading? ›
MATIC is one of the most promising Cryptos of this year. Indeed, 2022 was not a great year for Cryptos, but when we look back at 2021, MATIC saw a major jump in its price, from $0.01 on 1 January 2021 to a level of $2.9 in late 2021! Now, why is MATIC such a lucrative choice for day trading?What is the easiest trading strategy to learn? ›
Following the trend is probably the easiest trading strategy for a beginner, based on the premise that the trend is your friend. Contrarian investing refers to going against the market herd. You short a stock when the market is rising or buy it when the market is falling.How much should I start day trading crypto with? ›
How much money do I need to start investing in cryptocurrency? In theory it takes only a few dollars to invest in cryptocurrency. Most crypto exchanges, for example, have a minimum trade that might be $5 or $10. Other crypto trading apps might have a minimum that's even lower.
How to earn $100 usd per day in crypto? ›
If you put in $1000 on Binance and track a 10% rise on one pair, you will have made $100. Repeat this every day and you will be making $100 a day, every single day. The above is a screenshot taken today 29th October 2021.
Day trading can be a lucrative activity. However, it is essential to keep in mind it is also by far one of the most high-risk ways to interact with cryptocurrencies. Understanding the details of how to day trade crypto is very important if you want to see long-term gains.How many hours a day do crypto traders work? ›
Cryptocurrency trades non-stop, 24 hours per day, 365 days per year. The crypto markets never close, which means traders and investors can always execute crypto transactions.What is the most powerful forex strategy? ›
Trend trading is one of the most reliable and simple forex trading strategies. As the name suggests, this type of strategy involves trading in the direction of the current price trend. In order to do so effectively, traders must first identify the overarching trend direction, duration, and strength.What strategies are used by the best forex robots? ›
What strategies are used by the best forex robots? Short-term strategies are more effective for forex robots. The most common strategies used by forex traders are scalping and high-frequency trading (HFT). Scalping involves buying and selling currency pairs with short holding times to make a large number of profits.What is the most accurate trading strategy? ›
Trend trading strategy. This strategy describes when a trader uses technical analysis to define a trend, and only enters trades in the direction of the pre-determined trend. The above is a famous trading motto and one of the most accurate in the markets. Following the trend is different from being 'bullish or bearish' ...Which trading style is most profitable? ›
Trend following strategies, when followed correctly of course, are the safest and arguably the most profitable trading strategies out there. They perform best when used over the long-term, as trends take weeks and months to develop, and may potentially last for years or even decades.Which is the most profitable trading strategy? ›
Intraday trading: This trading type makes you buy and sell your stocks on the same day before the market closes. You need to track your market position the entire day, looking for a good opportunity to sell your stocks. Intraday trading is a great method of making fast profits provided you invest in the right stocks.What is the easiest forex strategy? ›
When it comes to Forex trading for beginners, the pin bar is king. This is because it's a very obvious pattern, making it easy to identify on a chart. It's also one of the easier strategies to trade. Notice how the market came into resistance during a rally but was soon able to break through that resistance.What algorithm is used for trading? ›
Algorithmic trading (also called automated trading, black-box trading, or algo-trading) uses a computer program that follows a defined set of instructions (an algorithm) to place a trade. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader.
What are the two major strategies in algo trading? ›
Strategies for Algorithmic Trading
The most popular strategies are arbitrage, index fund rebalancing, mean reversion, and market timing. Other strategies are scalping, transaction cost reduction, and pairs trading. `