Dollar Cost Averaging (DCA)

Automated position building strategy that lowers your average entry price by buying more as the price drops, improving profit potential when the market recovers.

What is DCA?

Strategy Overview

Dollar Cost Averaging (DCA) is an investment strategy where you add to a position gradually as the price drops, rather than investing all at once. This systematic approach helps reduce the impact of volatility and lowers your average entry price.

In Simple Terms: Instead of buying 5 SOL worth of tokens all at once, you buy 1 SOL initially, then add 1 SOL more each time the price drops 10%. This way, if the price goes down, you're buying more tokens at lower prices, which improves your average cost.

How DCA Works in ScreenerBot

Automated DCA Flow

Initial Entry

Your first buy opens a position and starts tracking the entry price

Price Monitoring

System continuously checks current price vs average entry price

Threshold Trigger

When price drops by configured percentage (e.g., -10%), DCA opportunity detected

Cooldown Check

Ensures minimum time has passed since last DCA entry (prevents rapid-fire buys)

DCA Execution

Automatic buy executed, average entry price recalculated, position updated

Repeat Process

Process repeats up to maximum DCA count per position

DCA Configuration

Configuration Options

Configure DCA settings in the Dashboard → System → Config page under the Trader section.

DCA Enabled

Master switch for DCA functionality

trader.dca_enabled

Default: false

Threshold Percentage

Price drop % from average entry to trigger DCA

trader.dca_threshold_pct

Default: 10.0 (10% drop)

Max DCA Count

Maximum DCA entries per position

trader.dca_max_count

Default: 3 entries

Size Percentage

DCA buy size as % of initial entry

trader.dca_size_percentage

Default: 100.0 (same as initial)

Cooldown Period

Minimum minutes between DCA entries

trader.dca_cooldown_minutes

Default: 30 minutes

Important: Changes to DCA configuration require reloading the config or restarting the bot to take effect. Use the Reload Config button on the Config page.

Example Scenario

Real-World DCA Example

Entry 1 (Initial):

1 SOL @ $0.10 per token = 10 tokens

Average entry: $0.10

Entry 2 (DCA -10%):

1 SOL @ $0.09 per token = 11.11 tokens

Average entry: $0.0947 (-5.3% improvement)

Entry 3 (DCA -10%):

1 SOL @ $0.081 per token = 12.35 tokens

Average entry: $0.0897 (-10.3% improvement)

Final Result:

Total: 33.46 tokens for 3 SOL

Average cost: $0.0897 per token

Benefit: 10.3% better than initial $0.10 entry

If price recovers to $0.10, you profit immediately due to lower average cost!

Benefits of DCA

Lower Average Cost

By buying more tokens at lower prices, you reduce your average entry price. This means the token doesn't need to recover to your initial entry for you to profit.

Risk Management

Start with smaller positions and add gradually. Limits initial exposure while maintaining opportunity to profit from dips.

Better Recovery

With a lower average entry, you reach profitability faster when price rebounds. Small price increases become meaningful gains.

Emotion Control

Systematic, automated buying removes emotional decisions. No panic buying or FOMO - just disciplined position building.

DCA + Exit Strategies

Combining DCA with Trailing Stop

DCA works best when combined with trailing stop loss exit strategy. This powerful combination protects your downside while maximizing upside potential:

DCA lowers your entry cost as price drops, improving your position

Trailing stop activates when profit reaches threshold (e.g., +20%)

Stop trails from highest price, locking in gains while allowing continued upside

Auto-exit when price drops from peak, securing your profits

Configure trailing stop in Dashboard → Config under Positions section. Typical settings: 20% activation, 10% distance.

Best Practices

Recommended Approach

•Start with 30-50% of planned investment as initial entry
•Set cooldown to 30+ minutes to avoid rapid-fire DCA
•Use 10-15% threshold for moderate volatility tokens
•Limit to 3-5 DCA entries max per position
•Monitor average entry price on Positions page
•Combine with trailing stop for automated exits

Common Pitfalls to Avoid

•Don't use DCA on highly volatile meme coins (use larger threshold)
•Don't set cooldown too short (<15 minutes risks over-investing)
•Don't use too many DCA entries (depletes capital quickly)
•Don't DCA on tokens with concerning security scores
•Don't forget to enable DCA in config (it's off by default)
•Don't ignore liquidity - ensure sufficient for your total planned investment

Troubleshooting

Common Issues & Solutions

DCA not triggering despite price drop

• Check trader.dca_enabled is true in config
• Verify cooldown period has passed since last DCA entry
• Ensure max DCA count hasn't been reached for position
• Check Trader is running (not paused)
• Verify price drop exceeds threshold percentage

Too many DCA entries too quickly

• Increase trader.dca_cooldown_minutes (try 30-60 minutes)
• Increase trader.dca_threshold_pct to require larger drops
• Reduce trader.dca_max_count to limit total entries

DCA using wrong amount

• Check trader.dca_size_percentage setting
• 100% = same as initial entry, 50% = half of initial, etc.
• Reload config after changing values

Can't find DCA entries in position history

• Open position on Positions page
• Click to expand details
• View "Entry Records" section showing all entries with timestamps
• Average entry price displayed at top of position card

Getting Started

Dashboard Guides

Trading Guides

Reference

Trading Tools

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