How to Use Dollar-Cost Averaging (DCA)

Dollar-Cost Averaging (DCA) is a trading strategy that helps reduce exposure to price volatility by spreading out buy or sell transactions over time. Instead of executing a single large trade, DCA automatically places multiple smaller trades at regular intervals. This method allows traders to gradually build or exit a position without being affected by short-term price fluctuations.

Setting Up a DCA Buy

1. Paste the contract address of the token you want to purchase into the Motion bot.

2. Open the DCA menu, where you will configure the following parameters:

   • Amount: Enter the total amount of MOVE you want to buy.

   • Split Over: Define the number of separate transactions the total amount will be divided into.

   • Interval: Set the time gap between each transaction (e.g., every 10 minutes, every hour).

3. Review your settings to ensure the purchase schedule aligns with your strategy.

4. Click "Start DCA" to activate the automated buy orders. The bot will handle the transactions based on your configured schedule.

Example:

• The bot is set to buy 10 MOVE in total.

• The 10 MOVE is split over 5 transactions.

• The bot will execute a buy every 30 minutes.

• This results in 5 separate transactions of 2 MOVE each over 2.5 hours.

Setting Up a DCA Sell

DCA can also be used to sell tokens gradually instead of exiting a position all at once.

1. Navigate to the DCA menu and select the sell option.

2. Configure the following settings:

   • Total Amount: Enter the total number of tokens you want to sell.

   • Split Over: Choose how many separate transactions the sell orders will be divided into.

   • Interval: Set the time gap between each sale.

3. Click "Start DCA" to begin executing the sell transactions based on the configured schedule.

Example:

• The bot is set to sell 100 tokens.

• The 100 tokens will be sold over 10 transactions.

• The bot will execute a sell every hour.

• This results in 10 transactions of 10 tokens each over 10 hours.

Additional DCA Features

• Price Range Limits: Users can set conditions to ensure DCA transactions only occur when the token is within a specific price range or market cap.

• Adjustable Settings: DCA orders can be modified or stopped at any time from the trade management panel.

• Risk Reduction: By distributing trades over time, DCA helps mitigate sudden price drops or spikes, making it a useful strategy for long-term trading.