Post
Topic
Board Trading Discussion
Re: DCA instead of stop-loss
by
RealMalatesta
on 16/01/2022, 05:46:35 UTC
in case that the market turns against me - I become an investor until I spot an opportunity to carry out a correctly calculated DCA (I've done it enough times that now I can be fairly certain when will it move in my desired direction and that the movement will be enough to recover and close the deal in green).
Yeah, that must be the best option for a trader can have on negative market direction. But, it will be possible only on following conditions:
1. DCA will be possible only with fundamentally stronger assets like bitcoin.
2. DCA is all about investment hence only on spot market possible with delivery (withdrawing to personal wallet).

It requires a lot of reserve, but hey - it goes to show that the 'up to 5%' rule really makes sense.
Yeah, if you are about to average your buying costs then you should never prefer to go all-in. It means that you will have some reserve always to buy more when dips happen.