DCA Range

The Sonar DCA Range Strategy automates buying and selling through regularly timed orders, based on predefined market cap (MC) thresholds. Unlike the Volume Range Strategy, which operates within a market cap bracket, the DCA Range Strategy executes trades outside the defined bracket. Buy orders are triggered when the market cap falls below the minimum, and sell orders are triggered when the market cap rises above the maximum. If the market cap is within the bracket, no trades will occur.

How It Works:

For this strategy to function, users must hold both the token they wish to sell and Eth for buying. The total number of orders is set for the entire strategy, meaning it applies to both buying and selling combined.

• Buying: If the market cap drops below the defined minimum, the strategy will begin buying tokens based on the user’s DCA settings.

• Selling: If the market cap rises above the defined maximum, the strategy will start selling tokens in regular intervals, as per the DCA parameters.

The order size is determined by dividing both your token and Eth balance by the total number of orders you set for the strategy. This gives you the fixed order size for both buying and selling. For example, if you hold $100 worth of tokens and $100 worth of Eth and set a total of 10 orders, your order size will be $10 worth of tokens for selling and $10 worth of Eth for buying.

The strategy will execute a total of 10 orders in response to market conditions, either buying when the market cap falls below the minimum or selling when it rises above the maximum. The order size remains fixed based on your initial balances and settings, regardless of whether the orders are buys or sells.

Example:

Let’s say you hold $10,000 worth of a token and $10,000 worth of Eth, and set the following parameters:

• Time Interval: Every 15 minutes

• Total Orders: 100

• Market cap range: $8 million to $12 million

The strategy will:

• Buy: If the market cap drops below $8 million, the strategy will start buying, placing orders every 15 minutes as long as the market cap remains below the minimum or until the total number of orders has been executed.

• Sell: If the market cap rises above $12 million, the strategy will sell portions of your token holdings, placing orders every 15 minutes while the market cap is above the maximum or until the total number of orders has been completed.

For example, the strategy may execute 33 buy orders and 67 sell orders, depending on how the market moves. Once the total of 100 orders is fulfilled, the strategy will stop, regardless of whether your entire position is sold off or not.