Documentation
Trading Strategies / Bot Setups
strategies
Abstract
This strategy allows us to run a Required Change Range Strategy like strategy without the need to use Custom DCA orders. The settings can all be done by using only the Percentage settings and can therefore be done easier.
Description
Each deal of this strategy takes care that deviation from the previous DCA order stays the same and limits the maximum required change to take profit by that. Further the required change to reach the take profit is reduced to a configured minimum required change to take profit, e.g. 5 %.
What does it solve?
If we use DCA type Scaled and only configure safety orders via Step Scale and Volume Scale. We are likely to observe bigger and bigger drops before the next safety order is reached. Maybe like that -5, -10, -15, -20 %. That is it’s getting more and more difficult to get the deal closed.
Instead we maybe wanted to limit the deviation between safety orders that it remains the same and that the required change after a DCA order is e.g. 5%.
With an auto-scaled (aka required change) safety order, that will maybe be “improved” soon, we would be able to e.g. configure that the volume on each safety order is scaled so that the resulting required change to reach minimum take profit is as configured, e.g. 5%.
But this can also be achieved with DCA Type Scaled and Custom. We can already configure the safety order levels and volumes, that the deviation between the steps that for the last step the maximum required change from reaching the minimum take profit is at most 10% and after a safety order only requires e.g. 5 %.
By that we also limit the maximum required change to take profit. We only have to take care that the maximum required change after the second order is e.g. 10%
How does it work?
- Enable the DCA mode and choose DCA type [Custom] or DCA type [Scaled]
- Add as many safety orders as you want to execute automatically
- Configure the Step % from previous order, with the same deviation between the steps
- Configure DCA Order amount to reduce the required change to 5 %
