Trading Strategies

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?
- Accumulating Long Term: You believe in Fundamental Value of Bitcoin/Ethereum and want to stack sats.
- 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.
Related Articles
Trading Strategies
Scalping with AI Bots: High-Frequency Basics
Speed kills... the competition. How AI executes hundreds of trades to profit from micro-movements.
1 min read
Trading Strategies
Swing Trading Strategies with AI
Capturing the 'meat' of the move. A balanced approach between day trading and holding.
1 min read
Trading Strategies
Momentum Trading: Catching Trends with AI
The trend is your friend. How Momentum Bots surf the big waves of a crypto bull run.
1 min read
