Dollar-Cost Averaging (DCA) Bot


  • By DAVE

1. Why do you need DCA

Dollar-Cost Averaging (DCA) is one of the simplest strategies for trading. According to the data, 90% of traders would be in a better position, if they used DCA instead of investing their funds manually.

Dollar-Cost-Averaging is a strategy that allows the investor to buy the same dollar amount of investment at regular intervals. The purchases occur regularly at specified timeframes, regardless of the asset’s price at that moment.

2. How to use Dollar-Cost Averaging on Pionex?

Visit Pionex and select Dollar-Cost Averaging from the list of trading tools.

Pionex let’s you choose one of the following 5 time intervals for the DCA strategy: 10 Minutes, 1 Hour, 1 Day, 1 Week and 1 Month.

After you input the 2 parameters for DCA, the required “Investment Per Week” will be calculated and listed below. This is the minimum balance needed to start your DCA strategy. Your funds for the whole runtime will be frozen into a DCA Pool, once you start the strategy.

Investment Per Week = (168/Investment Interval(hr)) * Investment Each Time

3. DCA Example

Invest in ETH by using the DCA strategy: Set the investment interval to 1 hour and invest 10 USDT each time. In this case, the investment per week would be 1680 USDT. This amount will be frozen for the DCA Pool, once you start the strategy. The DCA strategy will continuously invest 10 USDT in ETH every 1 hour until all the funds in the DCA Pool have been invested.

  • The DCA strategy will always freeze the funds needed for 7 days, once you start it. After all funds in the DCA Pool have been consumed, it’ll ask you if you want to freeze more funds for an additional 7 days. The strategy will be canceled, once you don’t have enough balance in your account.

  • If you choose 1 month as your investment interval, the minimum requirement for the DCA strategy will be the funds you need for 1 month.

Last updated