DCA Strategy
The DCA Strategy on Sonar automates your buys and sells by executing trades at consistent intervals over a set period of time. This method allows you to gradually enter or exit positions, helping you avoid large price fluctuations and minimize market impact. Additionally, by spreading trades over time, the DCA strategy helps average out your cost, reducing the risks of trying to time the market perfectly.
Steps to Set Up a DCA Strategy
1. Create New Strategy
Navigate to the ‘Strategy’ dashboard, and click the "New Strategy" button on the top right corner of the page. This will take you to the strategy creation screen, where you can begin customizing your trading parameters.
2. Select Order Type
Once you initiate a new strategy, select whether you want to execute a Buy or Sell order. After choosing your order type, proceed by selecting the DCA method to configure automated trades according to the specific frequency and parameters you set.
3. Select Your Token
For selling, select a token from the list of tokens you hold in your Sonar account.
For buying, you’ll either choose from the available token list or import a new token to purchase.
4. Define Strategy Parameters
Amount: Set the amount of tokens for selling or Eth for buying that will be used in the strategy.
Interval & Total Orders: Specify how often the trades should occur by setting the interval (e.g., every 8 minutes) and the total number of orders (e.g., 24 orders). This will distribute the total amount evenly across the specified number of trades.
Market Cap Threshold: For buying, set a maximum market cap to ensure purchases are only made when the market cap is below this limit. For selling, set a minimum market cap to ensure sales are only made when the market cap is above this threshold.
5. Activate Your Strategy
Once all parameters are set, click "Set Strategy" to activate your DCA Strategy. Sonar will automate your trades—either buys or sells—based on the intervals and conditions you’ve defined. You can view and manage your active strategies in the Strategy Dashboard, where you’ll be able to track performance, view transaction history, and make adjustments if needed.
By leveraging the DCA Strategy, you can gradually buy or sell tokens over time, reducing exposure to market volatility and achieving a better average price while aligning trades with your financial goals.
Last updated
