Manual position averaging is a method traders can use to improve their trading strategy and potentially increase their profits. This method involves taking multiple positions in the same asset at different prices and averaging them together to achieve a better overall position.
One benefit of using manual position averaging in trading is that it can help to reduce your risk of losses caused by market volatility. By averaging the price of a position over time, you can reduce the impact of short-term fluctuations in the market and create a more stable overall position.
Another benefit of manual position averaging is allowing you to take advantage of market trends over time. By averaging your positions over a more extended period, you can capture the overall movement of the market and potentially profit from it.
📑 Note: When using the manual position averaging, it is important to remember that each bot’s cycle is independent of the previous one. This means that a new cycle will begin with the initial investment, and the averaging will only apply to positions taken during the current cycle.
⚖️ How to average my DCA position?
To use manual position averaging, follow these simple steps:
From the list of active bots, select the bot you want to use for manual position averaging.
Click [Bot actions] button.
In the drop-down menu that appears, select the [Manual position averaging] option.
When you select the manual position averaging option, a pop-up window will appear. Alternatively, you can use the slider below the "Amount" field to adjust the amount of the available balance that will be added to the bot for averaging. As you move the slider, the “Amount” field will update automatically to reflect the new percentage of the available balance that will be allocated to the bot.
Below the slider, you will find additional information about your available balance, including how many of your funds can be used for the bot, your current DCA (Dollar Cost Averaging) price, and your new DCA price.
The DCA price is the average price of the asset in the current cycle before you manually average your position.
New DCA price is the new average price of the asset in the cycle after manual averaging.
After entering the averaging amount, click the [Confirm] button to apply the changes. The bot will execute the averaging transaction, and you can find it in the bot’s history with the status “Manual avg”. The changes in the DCA level and position size will also be reflected on the chart.
With the manual position averaging tool, you can reduce your risk of losses and increase your profits. By averaging your entry position with the manual position averaging feature you can smooth out the impact of market volatility and create a more stable overall position.