Trading Strategies
sarah-jenkins
Written by
Sarah Jenkins
Feb 2, 2025
2 min read

When to Use DCA Bots (Dollar Cost Averaging)

"Time in the market beats timing the market." But what if you buy the top? Dollar Cost Averaging (DCA) is the antidote to bad timing.

The Logic

Instead of investing $1,000 all at once, you invest $100 every week (or every 5% drop).

  • If price goes down, you buy more coins for important cheaper.
  • This lowers your "Average Entry Price."
  • When price recovers, you reach profit much faster than if you had just held.

Martingale DCA (Aggressive)

Some bots double the buy amount with every drop ($10, $20, $40...).

  • Pros: You recover very fast with a small bounce.
  • Cons: Can drain your wallet quickly if the crash keeps going. High Risk.

When to Use It?

  1. Accumulating Long Term: You believe in Fundamental Value of Bitcoin/Ethereum and want to stack sats.
  2. During Bull Market Dips: Buying the 20% corrections to ride the next wave up.

AI Enhancement

Standard DCA buys blindly. AI DCA buys intelligently.

  • It waits for an RSI Oversold signal before buying the dip, optimizing your entry even further.

DCA is the strategy for the patient investor who wants to sleep well at night.

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