📘 GitBook: DCA Bot – Complete Lifecycle Guide

1 Introduction – What is a DCA Bot?

What is Dollar Cost Averaging (DCA)?

A DCA bot is an automated trading strategy that:

• Buys an asset in multiple steps as price moves

• Reduces average buy price

• Sells the entire position at a predefined Take Profit (TP) or Stop Loss (SL)

What your DCA bot does

Your bot:

• Automatically places BUY orders

• Tracks average price

• Places SELL orders when TP or SL is hit

• Calculates realized profit or loss

• Works fully automatically once started

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2 Creating a DCA Bot (Bot Setup)

When a user creates a bot, they configure:

Required Inputs

• Trading Pair (e.g. BTC/USDT)

• Base Order Amount

• Safety Order Amount

• Max Safety Orders

• Price Deviation (%)

• Take Profit (%)

• Stop Loss (%)

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3 Starting the Bot

When user clicks START BOT:

Internally

• Bot status changes to running

• Bot places the first BUY order (Base Order)

• Bot starts monitoring price using exchange data

Important

• This BUY is not profit

• It only opens a position

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4 How BUY Orders Work (DCA Logic)

Base Order

• First BUY order

• Opens the position

Safety Orders

• Triggered when price drops by configured deviation

• Each safety order:

  • Buys more

  • Lowers average buy price

Example

Price drops → Safety order triggered
Price drops again → Next safety order

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5 Average Price Calculation

Your bot constantly recalculates:

Average Price = Total Buy Cost / Total Buy Quantity

This average price is used for:

• Take Profit check

• Stop Loss check

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6 Take Profit (TP) Logic

What is Take Profit?

Take Profit is the price at which:

• Bot sells entire position

• Locks in profit

When TP is hit

• Bot places a SELL order

• Bot closes the trade

• Bot status becomes stopped

Internally

• SELL order is stored

• Realized P&L is calculated

• Bot lifecycle ends successfully

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7 Stop Loss (SL) Logic

What is Stop Loss?

Stop Loss limits loss if market moves against you.

When SL is hit

• Bot places a SELL order

• Loss is realized

• Bot status becomes stopped

Important

• SL trades are included in P&L

• Bot is not deleted automatically

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8 Manual Bot Stop / Delete

If user stops a bot manually

• Bot places SELL order (if position open)

• P&L is realized

• Bot status = stopped

If user deletes a bot

• Bot record is removed

• Orders remain in history

• P&L is still included in user stats

⚠️ Deleting a bot does NOT delete trade history

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9 Orders & Trade History

BUY Orders

• Open or increase position

• Do NOT count as profit

SELL Orders

• Close position

• Generate realized profit or loss

All orders are visible in:

• Trade history

• Dashboard orders table

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10 Realized P&L (Most Important)

What is Realized P&L?

Realized P&L is:

Actual profit or loss after a SELL order is completed

Included in Realized P&L

TP hit SL hit Manual stop Deleted bots Running bots (once sold)

Not included

❌ Open positions ❌ Unrealized profit

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11 User-Level P&L (Dashboard)

Dashboard shows:

• Total realized P&L (all bots combined)

• Buy trades count

• Sell trades count

How it is calculated

• FIFO method (first buy → first sell)

• Based only on SELL orders

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12 Bot Status Meaning

Status	Meaning
created	Bot configured, not started
running	Bot actively trading
stopped	TP / SL / manual stop
deleted	Bot removed, history preserved

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13 Full Bot Lifecycle (Visual)

Create Bot
   ↓
Start Bot
   ↓
Base Buy
   ↓
Safety Buys (optional)
   ↓
TP or SL Hit
   ↓
Sell Order
   ↓
Realized P&L
   ↓
Bot Stopped / Deleted

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14 Risk Disclaimer (IMPORTANT)

• DCA does NOT guarantee profit

• Market conditions can cause losses

• Always configure Stop Loss

• Use risk management

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15 Summary

• Bots automate buying & selling

• Profit is realized only on SELL

• Dashboard shows combined P&L

• Deleted bots still count

• You are always in control