DCA Strategy
The DCA (Dollar-Cost Averaging) Strategy automates token execution at fixed time intervals. It can be used for selling or buying, allowing users to distribute execution over time instead of completing it in a single transaction.
This approach helps average the execution price across multiple intervals, reducing reliance on market timing and minimizing exposure to short-term price swings.
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 left corner of the page. This will take you to the strategy creation screen, where you can begin customizing your parameters.
2. Select Chain
Choose the correct network for the asset you want to use for your strategy. Only tokens held in your Sonar account that chain will be available.
3. Select Order Type
After starting a new strategy, choose whether it will execute a Buy or Sell action. Then, select the DCA method to automate execution at defined time intervals based on the parameters you set.
4. 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.
5. Define Strategy Parameters
Amount: Set the amount of tokens for selling or native token for buying that will be used in the strategy.
Interval & Total Orders: Set how often execution occurs and how many total orders will be placed. The total amount will be split evenly across the defined number of intervals. For example, setting the strategy to execute every 10 minutes over 12 orders will divide the total token amount into 12 equal parts, with one executed every 10 minutes. (10 minutes / 12 orders)
Market Cap Threshold: For selling, set a minimum market cap to ensure sales are only made when the market cap is above this threshold. For buying, set a maximum market cap to ensure purchases are only made when the market cap is below this limit.
Smart Gas: Is an optional feature available only on the Ethereum network. You can adjust the gas level or disable it entirely based on your preference. Learn more about how Smart Gas works →
Auto Withdraw: When enabled on your strategy, automatically sends all proceeds to your designated address once the strategy completes.
6. Activate Your Strategy
Once all parameters are configured, click Set Strategy to activate your DCA Strategy. Sonar will execute based on the schedule you’ve defined, automatically handling sells or buys at each interval.
You can monitor and manage all active strategies from the Strategy Dashboard, where you’ll find execution history, performance metrics, and the option to make adjustments as needed.
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