If you’ve launched a DCA bot but want to improve its performance, this guide will help you optimize its settings. We’ll cover:
Analyzing historical data to refine trade start conditions
Adjusting averaging orders for better risk management
Fine-tuning profit targets to maximize gains
1. Reviewing Current Bot Performance
Before making changes, evaluate how your bot is performing:
Navigate to Active trades to check open positions.
Identify trades that are stuck in negative territory (in red).
Consider multi-pair vs. single-pair bots – changes will apply to all selected pairs.
Example:
If a bot trading Ethereum (ETH) is far from executing the next averaging order, it may require better spacing in its averaging order settings.
2. Adjusting averaging orders
Averaging orders help lower your average entry price. To optimize them:
Check historical price drops using a TradingView chart (e.g., last 4-hour candle drops).
Measure the maximum drawdown to set an appropriate price deviation.
Adjust the following bot settings:
Price Deviation to Open averaging Order → Adjust for wider gaps.
Averaging Order Step Multiplier → Modify scaling to match past drawdowns.
💡 Example: If the maximum price drop for ETH is 43%, set averaging orders to gradually buy down to this level.
3. Refining Trade Start Conditions
Choosing the right trade start conditions prevents unnecessary trades.
Use Relative Strength Index (RSI) for better trade entries.
Combine multiple indicators for confirmation.
Test new settings in Paper Trading mode before applying to real funds.
Example RSI Setup for Entry:
RSI (14) on 1-hour timeframe: Buy if RSI < 30.
RSI (7) on 4-hour timeframe: Buy if RSI < 30.
Condition: RSI (14) must cross up 30 while RSI (7) remains below 30.
This ensures a stronger buy signal rather than relying on a single RSI metric.
4. Setting Profit Targets Efficiently
Instead of setting a static take profit, use adaptive conditions:
Enable Take Profit Based on Conditions (mirroring trade start conditions).
Use RSI (14) > 70 on a 4-hour chart as a sell trigger.
Set a minimum profit threshold to prevent premature exits.
💡 Example: If RSI crosses below 70, the bot exits the trade, ensuring profits aren’t lost in a sudden drop.
5. Running Multiple Bots for Optimization
Create multiple bots with slight variations in settings.
Run them on Paper Trading mode to compare performance.
Use the best-performing setup for real trading.
Final Steps
Apply your changes and test in Paper Trading mode first.
Monitor bot performance and tweak settings based on results.
Create multiple versions of your bot to diversify strategies.
📌 Pro Tip: Test at least three different variations of your bot to find the best one.
Now that you’ve optimized your DCA bot, let it run efficiently and adjust as needed. Happy trading! 🚀