OPEN-SOURCE SCRIPT
Updated Capital Coders FREE DCA Bot
Strategy Summary
This Dollar-Cost Averaging (DCA) strategy is engineered to identify and execute high-quality, safe entries during significant market drawdowns.
Instead of "buying the dip" blindly, this script waits for specific conditions to build a position safely. The core objective is to accumulate during a downturn and then exit the entire position for a quick, pre-defined profit target on the market's recovery.
This approach is designed to systematically capture small, consistent gains from volatility.
How It Works
High-Quality Entry: The strategy does not buy at the first sign of a dip. It waits for a qualified drawdown condition to be met, aiming to enter when the asset is significantly oversold.
DCA Scaling: Once the first entry is made, the script will automatically place subsequent "buy" orders at at lower points in the market. This averages down your entry price as the market searches for a bottom.
Safe Take-Profit: As soon as the price bounces back to a pre-defined profit level (calculated from your new average entry price), the strategy will close the entire position (all DCA orders). This locks in the profit and waits for the next high-quality setup.
Best Use & Recommended Settings
Assets: This strategy performs best on assets with high volatility and strong long-term upward trends. The volatility provides the entry opportunities, and the long-term trend provides the confidence for a "snap-back" recovery.
Recommended Pairs: BTCUSDT, ETHUSDT, and other major crypto-assets or high-growth stocks.
Timeframe: Works well on a 15-minute (15m), 1-Hour (1H) or 4-Hour (4H) chart, as this helps filter out minor "noise" and focus on more significant drawdown events.
Disclaimer
This script is provided for informational and educational purposes only. It is not financial advice. All trading involves substantial risk. Past performance is not an indicator of future results. Please conduct thorough backtesting and risk assessment before deploying this strategy with real capital.
This Dollar-Cost Averaging (DCA) strategy is engineered to identify and execute high-quality, safe entries during significant market drawdowns.
Instead of "buying the dip" blindly, this script waits for specific conditions to build a position safely. The core objective is to accumulate during a downturn and then exit the entire position for a quick, pre-defined profit target on the market's recovery.
This approach is designed to systematically capture small, consistent gains from volatility.
How It Works
High-Quality Entry: The strategy does not buy at the first sign of a dip. It waits for a qualified drawdown condition to be met, aiming to enter when the asset is significantly oversold.
DCA Scaling: Once the first entry is made, the script will automatically place subsequent "buy" orders at at lower points in the market. This averages down your entry price as the market searches for a bottom.
Safe Take-Profit: As soon as the price bounces back to a pre-defined profit level (calculated from your new average entry price), the strategy will close the entire position (all DCA orders). This locks in the profit and waits for the next high-quality setup.
Best Use & Recommended Settings
Assets: This strategy performs best on assets with high volatility and strong long-term upward trends. The volatility provides the entry opportunities, and the long-term trend provides the confidence for a "snap-back" recovery.
Recommended Pairs: BTCUSDT, ETHUSDT, and other major crypto-assets or high-growth stocks.
Timeframe: Works well on a 15-minute (15m), 1-Hour (1H) or 4-Hour (4H) chart, as this helps filter out minor "noise" and focus on more significant drawdown events.
Disclaimer
This script is provided for informational and educational purposes only. It is not financial advice. All trading involves substantial risk. Past performance is not an indicator of future results. Please conduct thorough backtesting and risk assessment before deploying this strategy with real capital.
Release Notes
Updated to V6 Fixed position sizing and Alert issues
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.