How to understand the DCA performance?
Last updated
Last updated
Before delving into this, familiarize yourself with DCA bots by learning more here.
A DCA bot executes the Dollar Cost Averaging strategy by initiating the first order (base order) and subsequently placing additional orders (safety orders) if the price moves unfavorably. This approach aims to lower your entry costs through Dollar Cost Averaging. When investing, you can access a comprehensive overview detailing how the DCA bot will handle both base and safety orders.
Base Order Size (BO): It indicates the size of the first order when a new position is open. For example, if you buy 10 USDT of BTC, the base order size will be 10 USDT.
Safety Orders n.1 Size (SO): It indicates the size of the orders that are open when a particular condition is met (for example: when the price goes against your base order). In this case, if you set a Safety Order Price Deviation at 2% and the BTC price drops by 5%, the bot will add a new order of 10 USDT and your position size will be 20 USDT.
Safety Order Volume Scale: The volume scale increases the order size of each subsequent safety order. For example, if the volume scale is 50.0%, and the first Safety Order is set at 10.00 USDT, then the subsequent safety order sizes will be of 15.00 USDT, 22.50 USDT, etc.
Max Position Size: The sum of Base Orders and Safety Orders sizes, when all Safety Orders are executed.
Exp Position Size: The sum of Base Orders and Safety Orders sizes, taking into consideration the real distribution of Safety Orders Executed, based on the last 30 days stats.
Max Position 30D Hit Ratio: The Hit Ratio represents the amount of positions that have been closed at the last Safety Orders divided by the total number of positions closed in the last 30 days by the bot.
In this table, you can see how to bot behaves in the last 30 days, in terms of Safety Orders execution. This table can give you an idea about what to expect from the DCA bot.
Target: the order and safety orders steps. From Base Order to Safety Order 5 in this case.
Hit Ratio: the number of positions that have been closed at the target, divided by the total number of close positions. In this example, you can notice that 33.8% of the positions have been closed when only the based order has been triggered.
Position Size: the size of the position at the time it's been closed. In this example, you can notice that if the position is closed at base order, then the size will be 10 USDT. If the position reaches Safety Order 4, for instance, it'll have a size of 91.3 USDT.
