DCA Trading Bot Strategy FAQ

How dollar-cost-averaging works in an automated bot: DCA levels, the EQ-price buy gate, partial sells, keep-balance reserves, and how TradeArmor matches ProfitTrailer's EQPRICE logic.

Dollar-cost averaging is the strategy most automated bots are built around, and the details of how a bot averages in matter a lot. These answers cover DCA levels, the EQ-price buy gate that protects your cost basis, partial sells, and keep-balance.

For worked examples, read the crypto DCA strategy guide and gated DCA vs simple DCA.

Frequently Asked Questions

What is a DCA trading bot?

A DCA (dollar-cost-averaging) bot buys an asset in stages as the price moves, instead of all at once. Each additional buy is a DCA level. Averaging in lowers your average entry price during a dip, and the bot sells when the position reaches your profit target.

How many DCA levels does TradeArmor support?

Up to 20 DCA levels per position. You can configure the spacing between levels, the size multiplier at each level, and a cooldown so the bot does not stack buys too quickly during a fast drop.

What is an EQ-price buy gate?

It is a rule that controls deeper DCA buys. Past a configurable level (10 by default), the next buy only fires when the price is below the lowest unsold leg's price, not just the average. This keeps the bot from averaging down carelessly and protects your cost basis.

Does TradeArmor match ProfitTrailer's EQPRICE logic?

Yes. TradeArmor's DCA buy gate matches ProfitTrailer's EQPRICE formula, so traders migrating from ProfitTrailer get the same buy-gate behavior they already rely on.

What is the difference between gated DCA and simple DCA?

Simple DCA buys at fixed price intervals regardless of your existing legs. Gated DCA adds a price gate on deeper buys so the next buy only fires below your lowest unsold leg. Gating reduces the risk of stacking too much size near a falling price.

Can the bot do partial sells?

Yes. You can configure partial-sell levels so the bot takes some profit and reduces risk without fully closing the position. The remaining unsold legs keep tracking for the buy-gate logic.

What is keep-balance and why does it matter?

Keep-balance reserves a percentage of your total portfolio value as untouchable cash, so the bot does not go all-in during a drawdown. Portfolio value is your available balance plus the current market value of open positions.

How does the bot decide when to sell a DCA position?

You set the rules: a take-profit percentage, a trailing take-profit, indicator-based exits, or a signal-based exit. The bot sells when the position meets your configured target.

Can I run DCA and other strategies at the same time?

Yes. With trading groups you can run DCA on one set of coins, a custom indicator strategy on another, and a grid bot on a third, all from one instance, each with independent settings.

Is DCA risk-free?

No. DCA lowers your average entry during a dip, but if an asset keeps falling, an averaged-down position can still lose value. DCA manages entries, it does not remove market risk. Size your levels and keep-balance with that in mind.

Which tier includes the DCA engine?

The DCA engine is on every tier, starting with Starter at $19.99 per month. Grid and futures are on the Enterprise tier.