Set up a reliable, automated Dollar-Cost Averaging strategy using The Trade Pilot. Learn how it works, how to configure it, and how it can simplify long-term crypto investing.
Dollar-Cost Averaging (DCA) is a time-tested strategy in both traditional finance and crypto investing. It involves consistently investing a fixed amount into an asset at regular intervals—regardless of price. This helps reduce the average entry cost over time and smooths out the impact of market volatility.
The Trade Pilot enhances DCA by automating its execution with smart features and advanced configurations. Whether you want a simple scheduled investment plan or a more aggressive strategy that adapts to market conditions, The Trade Pilot gives you the tools to tailor DCA to your needs.
Learn more: What Is Dollar-Cost Averaging (DCA) in Crypto Trading?
Basic DCA vs. Scaled DCA in The Trade Pilot
In its purest form, DCA means investing the same fixed amount (e.g., $100) in a cryptocurrency at regular intervals, such as weekly or monthly. This strategy requires no market timing and suits long-term investors seeking consistent accumulation.
To replicate basic DCA in The Trade Pilot:
- Automatic Rebuys: On
- Rebuy Trigger: Time interval (e.g., every 7 days) — this is the only option suitable for DCA
- Growth Rate: 1.0
- Level Multiplier: 1.0
- Rebuy Based On: Base Order
- Merge Rebuys: On or Off (doesn’t affect rebuy amounts)
This configuration ensures each rebuy is equal in value and scheduled by time.
For users looking for a more adaptive approach, The Trade Pilot also supports Scaled DCA, where rebuy amounts increase over time. This is controlled via the Level Multiplier and Growth Rate, allowing the strategy to invest more as price drops, accelerating recovery.
How DCA Works in The Trade Pilot
When a coin meets your defined filters, The Trade Pilot places a base buy order. Then, depending on your configuration, it can place additional rebuys using the following trigger:
- A specific time interval (in days)
Important: For DCA purposes, only time-based triggers should be used. The price drop trigger is more suitable for grid trading strategies, not DCA.
Key DCA Configuration Options:
- Automatic Rebuys: When enabled, the bot handles rebuys automatically. If turned off, rebuys are not made at all and must be done manually.
- Rebuy Trigger: Choose time interval for proper DCA behavior.
- Maximum Rebuys: Set a limit to how many rebuys can occur per position.
- Rebuy Based On: Select whether rebuy value is calculated from the base order or the total invested amount.
- Level Multiplier: Adjusts each rebuy to be larger than the previous one.
- Growth Rate: A constant multiplier for scaling rebuys.
- Merge Rebuys: When enabled, rebuys are combined with the existing position, allowing quicker exits through average pricing.
How Rebuys Are Calculated
Each rebuy amount is calculated using formula below:
rebuy_value = base_value × growth_rate × level_multiplierlevel
Where:
- base_value = either initial order value or total invested amount, depending on settings
- growth_rate = constant multiplier (e.g., 1.0)
- level_multiplier = scales rebuy based on the rebuy number (level)
Example 1: Basic DCA (No Multiplier or Growth)
Settings:
- Base Order: $100
- Growth Rate: 1.0
- Level Multiplier: 1.0
- Rebuy Based On: Base Order
Rebuy Sequence:
- Rebuy 1: $100
- Rebuy 2: $100
- Rebuy 3: $100
Total Invested: $400
This configuration follows traditional DCA: equal, fixed investments at every interval. It's best suited for long-term investors who prioritize consistency and simplicity.
Example 2: Scaled DCA (With Multiplier and Growth)
Settings:
- Base Order: $100
- Growth Rate: 1.0
- Level Multiplier: 1.2
- Rebuy Based On: Base Order
Rebuy Sequence:
- Rebuy 1: $120
- Rebuy 2: $144
- Rebuy 3: $173 (rounded)
Total Invested: $537
This configuration uses increasing investment sizes with each rebuy. It aims to average down more aggressively during dips and recover faster once the price rebounds. However, it also involves a higher risk exposure as the invested capital increases over time.
Comparison
Basic DCA (Example 1) keeps your exposure and risk predictable. Scaled DCA (Example 2) potentially reduces your average buy price faster, but it increases your capital commitment. Investors should consider their risk tolerance and available capital when choosing between these approaches.
Take Profit Options
The Trade Pilot allows you to configure a Take Profit percentage. When the average price of your position increases by this percentage, the bot automatically closes the trade.
However, if you set Take Profit = 0%, no automatic sell will occur. This lets you accumulate crypto over time and manually decide when to exit. This approach aligns well with long-term investing and DCA strategies where profit isn’t the immediate goal.
Tips for Using DCA Effectively
- Stick to Time-Based Triggers: Use time intervals for rebuys to maintain DCA structure.
- Avoid Multipliers for Basic DCA: Keep Growth Rate and Level Multiplier at 1.0 for equal investment sizes.
- Set a Rebuy Limit: Use Maximum Rebuys to avoid overcommitting capital.
- Use Take Profit = 0% for Investing Goals: Accumulate without automatic exits.
- Consider Manual Rebuys: Turn off Auto Rebuys if you want full control over when to invest.
Is It Still DCA If You Change the Settings?
When you start altering the rebuy amounts using a multiplier or growth rate, the strategy moves from pure DCA to a scaled DCA or hybrid strategy. While it still follows the principle of averaging entry price over time, the investment amounts are no longer equal.
Similarly, using price drop as a rebuy trigger shifts the strategy closer to grid trading, where the focus is on market movements rather than consistent time intervals.
So while The Trade Pilot allows significant flexibility, a strategy is only considered true DCA if:
- Rebuys are equal in value
- Rebuys are triggered on time
- Investment is consistent regardless of price
Anything beyond that is a DCA variant or a custom averaging strategy.
Why Use The Trade Pilot for DCA?
Manual DCA requires you to watch the clock and the market, making repeated transactions. The Trade Pilot removes all of that friction—automating every part of the process across the entire market.
Whether you're investing in Bitcoin, Ethereum, or altcoins, the bot scans the market 24/7, executes your strategy, and adapts as prices move. With support for advanced settings like rebuy limits, scaling options, and take profit controls, you can fine-tune your DCA to match your goals.
Final Thoughts
DCA is a proven, low-stress investing strategy. The Trade Pilot takes it to the next level by eliminating manual effort, enabling long-term consistency, and adding powerful customization options. If you're serious about crypto investing, automating your DCA plan is a smart move.
