What is DCA?
DCA stands for Dollar-Cost Averaging. A trading strategy where the bot places incremental buy (or sell) orders over time to average the entry price. This helps reduce the impact of volatility on your position.
What is a DCA bot and how does it work?
A DCA bot automatically executes this strategy by:
Starting a trade with a base order
Placing averaging orders if the price moves against the trade
Closing the trade when the target profit is reached
This makes the strategy effective in sideways or slightly trending markets.
Are DCA bots profitable?
Profitability depends on market conditions, your bot configuration, and how actively you monitor performance. DCA bots help capture small profits consistently, but they also carry risk, especially in strongly trending markets without proper stop-loss or averaging order settings.
How much can I earn with a DCA bot?
Returns vary by:
Trading pair volatility
Trade frequency
Bot settings (Take Profit %, number of trades)
Manual adjustments
Important: Past performance is not a guarantee of future results. Always backtest or use the Free plan to experiment first.
Why should I use a DCA bot for crypto trading?
Benefits include:
Automated order execution
Emotional detachment from trades
Better price averaging during dips
24/7 monitoring and trade placement
Can I use leverage with DCA bots?
Yes, on Futures exchanges like Binance Futures, Bybit, and OKX. You can set the leverage per trade or at the bot level depending on exchange capabilities.
Be cautious: leverage increases both potential gains and losses.
How are technical indicators applied?
DCA bots can start trades based on:
Built-in indicators like RSI, ULT, QFL
TradingView custom signals via alerts
Webhook/API-triggered signals
Indicator conditions must be met before a trade starts. These act as entry filters.
How is the commission calculated?
3Commas does not charge per trade. Your trading fees come from the exchange (e.g., Binance), based on your tier and whether the order is a maker or taker.
Can I use custom signals?
Yes. You can send signals via:
Webhook URLs
TradingView alert messages
Marketplace signal providers
This allows for full strategy automation using external tools.
How many active trades can a bot run?
Depends on:
Your Max Active Trades setting
Your subscription plan
Available balance
Example: A Multi-pair bot with Max Active Trades = 3 can only open 3 trades across all selected pairs at once.
Can I start onboarding without connecting an exchange?
Yes, you can explore the interface and configure a DCA bot without connecting an exchange using the Demo Account.
Is stop loss applied to the whole position?
Yes. The stop loss closes the entire trade including the base and all filled averaging orders. You can set it as:
A % distance from the average entry
A fixed price
Stop loss is optional but highly recommended for risk control.
Why isn’t my DCA bot opening trades even when conditions are met?
Check the following:
Is “Max Active Trades” already reached?
Are funds sufficient for Base + Averaging Orders?
Is the Trade Start Condition correctly configured?
Are there conflicting trades on the same pair?
Has the signal actually triggered (if using TradingView)?
You can review trade logs on the bot’s page for detailed insight.