DCA calculation formula

[ximonx]

I would like to understand how this DCA deal is calculated. What is the formula, and why is there $361 per deal? For context:

• The current BTC price is $90,000
• No leverage is being used
• Base order is 10% of $1,000
• One DCA order - 10% of $1,000 without volume, step scale.

Could someone please explain the calculation?

[d_yo_r]

10% of $1000 = $100
10% of $900  = $90

But maybe the minimum order size and lot step of the exchange doesn’t allow those order sizes which results in rounding and by that to the values that you see?

[ximonx]

It’s Binance Paper exchange. If I try to set the base order not in percentage but with a minimum required 100 USDT, and the same for the DCA order, I still get 361 USDT. I don’t know why. Your calculation makes sense to me, but the numbers are different, as you can see.

[d_yo_r]

I would expect that even paper trading uses the restrictions of the exchanges to improve the quality of the simulation.

[ximonx]

Ok, I tried it with 10,000 USDT, and now I get the correct calculation of 1,900 USDT.

It’s strange though - some notification about minimum order size would have been helpful. I spent 2 days trying to figure out the calculation, and nothing was adding up. Other people might get confused by this too.