Wick Hunter offers users the ability to optimize their trading strategies through various styles of Dollar Cost Averaging. In this article, we'll delve into Scaled DCA.
Understanding Scaled Settings:
Scaled settings in Wick Hunter allow users to define how their Dollar-Cost Averaging (DCA) increases with each level. Let's break down the key parameters that contribute to this scaling mechanism.
Max Active Orders: This setting determines the maximum number of active orders placed on the exchange. For instance, if you set it to "1", only one DCA will be active at a time. Once filled, the next DCA is placed, ensuring a controlled and systematic approach to trading.
Base Size Type: Choose between Dollar and Percentage options for your Base Size Type. It's crucial to note that the percentage is based on the total account balance, not the available balance. This setting influences how your position size is calculated, providing flexibility in your trading strategy.
Entry Size: This parameter defines your position size, not based on margin. Whether in Dollars or Percentage, entering a value here will determine the size of your initial position. For example, selecting Dollar and entering 100 will open a $100 DCA.
Order Type: Wick Hunter supports Limit and Post Only order types. Choose the order type that aligns with your trading preferences.
Number of Orders: Set the maximum number of DCAs you want to execute. This parameter allows you to control the depth of your DCA strategy.
Price Deviation: Input the percentage from your entry price to determine where your first DCA will be placed. For instance, if you enter 1% and initiate a short trade at $100, the bot will place the first DCA at $101.
Step Scale: The Step Scale setting involves inputting a multiplier for the percentage deviation of each subsequent DCA from the original entry price. If you set "2" here, the second DCA will be placed 2% away from the first, creating a scaling effect that increases with each level.
Volume Scale: Volume Scale allows you to input a multiplier for the size of your DCA. If you enter "2" and your first DCA is $100, the second DCA will be $200. This setting provides control over the size progression of your orders. In this example your third DCA would be $400 (second DCA of $200 multiplied by you scale of 2).
Mastering the Step and Volume Scaling features on Wick Hunter empowers traders on to implement sophisticated and dynamic trading strategies. By understanding and fine-tuning these parameters, you can optimize your DCA approach and enhance your overall trading performance.