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Increase Your Trading Strategy Options with Active Orders Limit on DCA Bots
Increase Your Trading Strategy Options with Active Orders Limit on DCA Bots
Updated this week

Active Orders Limit is a feature that allows you to limit the number of averaging orders placed simultaneously when creating a new DCA bot. This means that not all of your DCA bot's orders will be placed in the order book at once. Instead, orders are created as needed when the price reaches the closest DCA level to the position, thus giving you more control over your trading strategy. By placing orders as necessary, you can keep your balance available and use it for other trades while waiting for the right price action. This feature is just one of the many ways that Bitsgap empowers traders to take control of their investments and maximize their profits.

👉 How to enable Active Orders Limit for the DCA Bot?

By default, the Active Orders Limit feature is disabled. To activate it, simply navigate to the "Bot settings" section and click on "Manual adjustment". From there, you can access the drop-down menu and enable the feature.

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⛔ Attention

Once you start the DCA bot, it is not possible to activate the Active Orders Limit feature or modify the number of active averaging orders. Be sure to enable this feature during the initial setup.

If the number of simultaneously active orders is smaller than the number of averaging orders, the grids located at the lowest price will become inactive, turning gray on the chart. This is an important visual cue that indicates which grids are currently active and can help you keep track of your trading setup.

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When creating a DCA bot, the initial investment amount includes both active and inactive averaging orders. However, funds for inactive averaging orders are not reserved from your available balance once the bot is started. Instead, they are placed as limit orders when active averaging orders are executed. To better understand how it works, let’s take a look at an example using the DOT/USDT trading pair. Currently, the available balance for this account is 15,016.84 USDT.

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Now, let’s say we launch a DCA bot with an investment of 5,000 USDT, 10 Averaging orders, and 5 Inactive orders, as shown below.

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In this case, the amount of funds reserved for the averaging (green) orders will be calculated as follows: 82.12 USDT + 106.75 USDT + 138.78 USDT + 180.42 USDT + 234.52 USDT = 742.52 USDT.

<a href="https://downloads.intercomcdn.com/i/o/682769101/82dad1f6276ea0e09f93a599/image.png" target="_blank" rel="nofollow noopener noreferrer">https://downloads.intercomcdn.com/i/o/682769101/82dad1f6276ea0e09f93a599/image.png</a>

However, it is important to note that the DCA bot will only reserve funds for the active averaging orders, which in this case would be 742.63 USDT. By keeping inactive orders off your balance, you can stay cautious and take advantage of other opportunities as they arise.

<a href="https://downloads.intercomcdn.com/i/o/682773220/98f6c833e27336fdf6fb6ce4/image.png" target="_blank" rel="nofollow noopener noreferrer">https://downloads.intercomcdn.com/i/o/682773220/98f6c833e27336fdf6fb6ce4/image.png</a>

If you choose to activate the Stop Loss feature, pay attention to where you can place it. If a Long DCA bot is launched, the feature can be placed under the entire grid, including the active orders. If it’s a Short DCA bot, Stop Loss can be placed above the grid. These orders will then be labeled with a “Canceled” status.

<a href="https://downloads.intercomcdn.com/i/o/682782852/df3abb75e791bec7b09b7f7f/image.png" target="_blank" rel="nofollow noopener noreferrer">https://downloads.intercomcdn.com/i/o/682782852/df3abb75e791bec7b09b7f7f/image.png</a>

👋 Note

If all active averaging orders are executed, and your balance is insufficient, inactive orders will receive an error status of “Not enough balance”. You can manually restore them in the “Open orders” tab once the balance in your account is sufficient.

In conclusion, the Active Orders Limit feature provides traders with more control over their DCA bots. By limiting the number of averaging orders placed simultaneously, traders can create orders as needed, keeping their balance available for other trades. By using this additional tool for the DCA bot, you can maximize your profits and take control of your investments.


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