Enhancing DCA Bot Performance
DCA Bots on 3Commas have become more powerful with two key automated features:
Reinvesting: Automatically increases order size when profitable.
Risk Reduction: Adjusts order size based on past losses.
These features allow traders to maximize gains in favorable market conditions while limiting exposure during downturns.
⚠️ Note: These features are only available on the web version of 3Commas.
Automated Reinvesting
The Reinvesting feature allows your DCA bot to automatically reinvest a percentage of realized profits into new trades. The bot adjusts order sizes dynamically based on past performance.
How It Works:
The bot calculates the reinvestment percentage relative to the initial investment (Base + Averaging Orders).
New trade sizes increase proportionally based on the reinvestment percentage.
Users can set the Reinvesting percentage manually using a slider (0% - 100%).
Before each trade, the bot's actual current PnL is evaluated, and if the bot has losses from all previous trades - the order size decreases, and if there's profit - it increases.
Reinvesting Behavior:
Reinvesting Setting | Effect |
100% | All profits are reinvested, increasing order sizes. |
0% | Profits remain in balance, and bot trades with the initial order size. |
🔹 Example of Reinvestment Calculation:
When only Reinvesting option is enabled (e.g. for 100%):
Entry order sizes can both decrease and increase and cannot go below the initial size.
Initial Entry Order: 100 USDT
Profit from trade: +10 USDT
If Reinvesting = 100%, next order: 110 USDT
If next trade loses -20 USDT, next order reverts to 100 USDT (minimum).
If the next trade earns +50 USDT, next order = 140 USDT (profit accumulates).
⚠️ Important Considerations:
Only available on Pro, Expert, and Custom plans.
Requires QUOTE currency (Long bot) or BASE currency (Short bot).
Multi-Pair Bots: If you edit trading pairs, Reinvesting resets to 0% and must be reenabled.
Minimum Order Size Limits: If profits are too small to meet the exchange’s minimum order size, the reinvestment will not be applied.
Example: If the minimum order size for SOL/USDT is 43 USDT, but the bot has only 10 USDT profit, reinvestment won't apply unless the accumulated profit is sufficient.
Reinvesting Strategy Comparison:
Scenario | Strategy 1 (No Reinvestment) | Strategy 2 (Reinvestment 100%) |
Daily Investment | $100 | $100 + reinvested profit |
Daily Profit Target | 1% | 1% |
365 Days Total Profit | $365 | $986.55 (compounding effect) |
🔹 Key Takeaway: Reinvesting amplifies returns over time due to compounding.
Understanding Reinvested Value Calculation
When the Reinvest Profit feature is enabled in your DCA bot:
The Total Profit column reflects only the part of the profit not reinvested into future trades.
The Reinvested column tracks the cumulative amount that has been reinvested over time.
If Reinvest = 100%, the Total Profit column will always display $0, since all profits are rolled into future trade volumes.
Example: Reinvestment at 70%
Trade | Profit | Reinvested in This Trade | Total Reinvested | Reinvestment Logic |
1st | $10 | $7 (70%) reinvested, $3 kept | $0 | Reinvestment starts from the next trade |
2nd | $14.3 | $10 | $7 | T1 reinvestment: $7 |
3rd | $0 | $0 | $17 | T3 Total Reinvested: T1 ($7) + T2 ($10) = $17 |
4th | $10 | $7 | $41 | T4 Total Reinvested: T1 ($7) + T2 ($10) + T3 ($17) + T4 reinvestment ($7 + $17) = $41 |
5th | $0 | $0 | $65 | T5 Total Reinvested: T1 ($7) + T2 ($10) + T3 ($17) + T4 ($17) + T4 reinvestment ($7 + $17) = $65 |
How It Works
Each trade contributes to the next by compounding reinvested profits.
The “Reinvested in This Trade” value includes 70% of the current trade's profit.
The “Total Reinvested” value compounds this over time, even when trades don’t generate profit.
This compounding structure amplifies returns over time. Even without profit in some trades, the reinvested capital continues growing — enabling larger trade sizes and faster strategy scaling for consistent traders.
Automated Risk Reduction
The Risk Reduction feature adjusts the order size downward when previous trades resulted in losses. This prevents excessive exposure when market conditions are unfavorable.
How It Works:
The bot evaluates the current PnL before each trade.
If there are accumulated losses, the next order size decreases.
If profits increase, order sizes return to normal but will never exceed the initial size.
Risk Reduction works even if a trade closes manually or via a signal (not just Stop Loss).
Before each trade, the bot's actual current PnL is evaluated, and if the bot has losses from all previous trades - the order size decreases, and if there's profit - it increases.
⚠️ The Risk Reduction feature can be accessed only if the Stop Loss feature is turned on!
Risk Reduction Behavior:
Risk Reduction Setting | Effect |
100% | Order sizes decrease based on past losses. |
0% | The bot keeps trading with the initial order size, which may lead to insufficient funds errors. |
Example of Risk Reduction Calculation:
Scenario | Before Loss | After -20 USDT Loss |
Base Order Size | 100 USDT | 96 USDT |
Averaging Orders (x4) | 100 USDT each | 96 USDT each |
Total Allocated Capital | 500 USDT | 480 USDT |
📌 Key Takeaway: Risk Reduction minimizes trade sizes in losing streaks to preserve capital.
Another Example Scenario:
When only Risk reduction option is enabled (e.g. for 100%):
Entry order sizes can both decrease and increase, but will never exceed the initial configured size
Initial entry order size: 100 USDT
After several losing trades, next trade opens at: 80 USDT
This trade closes with +10 USDT profit (reducing total loss)
Following trade opens at: 90 USDT
If that trade makes +50 USDT profit
Next trade will open at: 100 USDT (maximum, as it's the initial size)
Combining Reinvesting & Risk Reduction
If both features are enabled, the bot dynamically adjusts both up and down, depending on actual current PnL.
Behavior When Both Are Enabled:
If past trades were profitable, order sizes increase (reinvesting).
If past trades were losses, order sizes decrease (risk reduction).
🔹 Example of Combined Strategy:
Scenario | Effect on Order Size |
Losing streak | Orders decrease (Risk Reduction) |
Winning streak | Orders increase (Reinvesting) |
Mixed results | Adjusts dynamically based on net PnL |
This approach ensures maximum profitability in uptrends while minimizing losses during downtrends.
Multi-Pair Bots & Reinvestment/Risk Reduction
For Multi-Pair Bots, Reinvestment and Risk Reduction work differently:
Multi-Pair Reinvestment:
The bot distributes profit across all active trades.
If a bot has 5 active trades, reinvestment spreads across all 5.
Multi-Pair Risk Reduction:
The bot spreads losses across all active trades, reducing order sizes collectively.
Final Takeaways:
Reinvesting increases trade sizes when profitable.
Risk Reduction decreases trade sizes when losses occur.
Both features together allow dynamic risk management.
Multi-Pair Bots distribute adjustments across multiple active trades.
By enabling these features, traders can optimize their trading strategy, ensuring higher returns during good markets while limiting risk in downturns.
🚀 Now, take advantage of these features and maximize your trading efficiency with DCA Bots on 3Commas! 🚀