Binance Spot Announces Launch of Spot DCA. It is a new dollar cost averaging (DCA) strategy for trading bots that allows users to automatically buy or sell a fixed amount of assets with a specified price deviation and desired frequency.
🟢 Using this feature, users can now configure DCA spot bots to buy or sell assets at the average price, thus reducing the impact of market volatility. In addition, DCA spot bots can help users automatically lock in profits with the desired take profit percentage, allowing users to enjoy a more convenient trading process.
What is Spot DCA?
Dollar cost averaging (DCA) is an investment strategy that involves buying and selling the same number of assets at different prices at set intervals. This strategy is used to achieve a better average purchase price of the asset and reduce the impact of volatility.
You can use the spot DCA feature on Binance to automatically buy or sell a fixed amount of assets with a defined price deviation on a regular basis (time intervals of your choice).
How to set up spot DCA?
1. Log in to your Binance account and click [Trading] - [Trading Bots].
Click [Spot DCA].
If you are using the Binance app, go to the [Trading] menu and tap [Trading Bots] - [Spot DCA].
2. You will be redirected to the spot trading interface with DCA. Choose a trading pair, for example BTC/USDT.
Then go to the options window on the right. Select [Buy Token A] or [Sell Token A] mode.
Note. The displayed token will change depending on the selected trading pair. Since we are using the BTC/USDT trading pair as an example, token A is BTC and you will see [Buy BTC] and [Sell BTC].
2.1. If you choose the [Buy Token A] mode, your investment will be in the quoted asset (USDT). To create a trading bot, you must have a sufficient amount of USDT in your spot wallet balance.
2.2. If you choose [Sell Token A] mode, your investment will be in the underlying asset (BTC). In order to create a trading bot, you must have a sufficient amount of BTC in your spot wallet balance. 3. Enter the order price deviation percentage and the take profit percentage. You can also choose a fixed or trailing take profit percentage.
4. Next, enter the investment amount for both the underlying order and the DCA order, as well as the maximum number of DCA orders. Click [Create]. Check the order details carefully and click [Confirm] to proceed.
Note. You can also configure additional parameters, including the activation price, price deviation multiplier, DCA order size multiplier, pause between rounds, lower and upper limits of the price range and stop loss.
5. To check your spot DCA orders and history, go to the [Executed] or [History] tab.
Click the order icon next to it to check the details.
You will be redirected to the details page. Here you can view your profit, parameters, current DCA round and trade history.
6. To view your trading bots, go to [Wallet] - [Overview] and click [Trading Bots].
