The Bitcoin market never fails to surprise with its sharp corrections and lightning-fast rebounds. This volatility often leaves traders scratching their heads, or worse, with significant losses. But what if you could protect yourself from this chaos, or even profit from it?
That’s exactly what our DEX DCA bot is designed to do.
Initially, one of the most popular tools on centralized exchanges, the DCA bot automatically averages down your entry and adjusts your Take Profit level when the market moves against you. This increases your chances of closing in profit once the market bounces back.
Instead of betting on whether the market will go up or down, the DCA strategy simply lets you expect that no crash lasts forever, and the price will not drop too drastically without a retracement strong enough to hit your Take Profit. It’s the ideal tool not only to manage volatility but also to accumulate assets like BTC over time.
But the elephant in the room is: does it actually work in practice?
To answer that, we’re diving into a real BTC trading case from one of our co-founders, Max, who used the bot to achieve over 200% ROI in just five months.
This post is a breakdown of the full case we covered on our YouTube channel, so if you’re more of a visual learner, you can watch the entire video below 👇
With that said, let’s dive into the case review.
$BTC DCA bot case review
Let’s jump right into the fun part – profitability.
In the screenshot above, you can see the results for yourself. The DCA bot started trading with just under 25 $USDC and closed with nearly 74 $USDC, delivering a total return of almost 200% ROI over the course of five months.
If we annualize that result, it comes out to an impressive 470% APY. Not a bad result for an automated strategy, don’t you think?
Now, it’s worth noting that this case involved 10x leverage, but even without it, the strategy would still deliver close to 50% APY. Quite a solid result in such a volatile market.
Looking at the balance chart, you’ll notice a few sharp drawdowns along the way. These dips were caused by sharp Bitcoin corrections, which temporarily pushed the bot’s positions into unrealized losses. But just as the DCA strategy is designed to do, the bot survived the storm and eventually recovered, finishing with a bigger balance than it initially started with.
This is exactly why we always recommend keeping extra funds in your account when using a DCA bot. It gives your strategy enough room to breathe through volatile swings, avoid liquidation, and potentially turn even the biggest corrections into profit opportunities.
Now, let’s look under the hood at the exact bot settings we used 👇
Here’s a breakdown of the exact setup used:
- Trading pair: Perp BTC/USDT;
- Leverage: 10x;
- Entry order type: buy market order;
- Funds required: 85 $USDC;
- Entry order size: 0.0001 $BTC (~8.83 $USDC);
- Number of av. orders: 10;
- 1st av. order size: 0.0001 $BTC (~8.83 $USDC);
- 1st av. order price step: 1.1%;
- Av. order size multiplier: 1.5x;
- Av. orders price step: 1.2%;
- Av. orders price step multiplier: 1.2x;
- TP order: limit order, 1% from the VWAP;
- SL order: 3% from the last av. order.
To replicate this strategy, all you need to do is connect your exchange account to the GoodCrypto app via API keys, plug in the parameters above, and hit “Launch”. The bot takes care of the rest.
This setup was engineered to cover nearly a 23% price decline. Hence, Max’s thesis was simple: “Bitcoin may dip, but it’s unlikely to fall over 25% without rebounding at least 1% to trigger my Take-Profit and exit in green”.
And the best part? You’re not locked into this template. If you want to experiment with risk tolerance, profitability, or volatility range, we’ve got you covered! Here are a few smart adjustment tips below 👇
how to improve your DCA bot setup
option #1: increasing averaging orders’ size multiplier
The most powerful lever you can pull when customizing your DCA bot is adjusting the averaging order size multiplier.
By increasing this multiplier, the bot is able to average down more aggressively, bringing your average entry price closer to the current market price. And the closer that average is, the better your chances of hitting your Take-Profit target during a market rebound.
But that’s not all.
The size multiplier also impacts the distance between the market price and your Take-Profit level at each stage of the bot’s averaging process. In the GoodCrypto app, you’ll find this metric displayed just below the Take-Profit row, designed specifically to help you estimate the likelihood of your Take Profit being triggered during the market retracements.
So, what happens when you increase the size multiplier?
You can start targeting larger Take-Profit values. For example, with a 2x multiplier instead of the default 1.5x, aiming for a 1.5% or even 2% Take-Profit becomes not only realistic, but smart. That’s because the higher Take Profit size is now compensated by the more effective average down of your position, thanks to the increased averaging orders’ size multiplier. As a result, you may end up with a more profitable setup, without increasing your risk.
However, as with any high-reward strategy, there’s a tradeoff.
Even a small bump in the size multiplier drastically increases the required capital. In this case, while the original setup needed just 85 $USDC, increasing the multiplier to 2x would push that number up to over 737 $USDC, that’s tenfold from the initial amount of funds required.
option #2: trailing stop for entry order
Another powerful tweak you can make to this DCA bot setup is to replace the market entry with a trailing stop order.
Why? A trailing order will ensure your bot won’t enter the trade when Bitcoin is actively dumping. It helps you catch the rebound, not the fall, giving your bot a much better starting point.
For Bitcoin’s typical volatility range, we recommend setting a tight trailing distance of 0.7% – 0.8%. This keeps your entry agile without getting faked out by small price fluctuations.
option #3: trailing stop for entry order
Finally, the bot could have used more averaging orders than in the initial setup. Why? The more averaging orders you use, the wider the price drop range your bot can withstand, which means more flexibility and more safety in volatile markets for your bot.
In Max’s original setup, 10 averaging orders covered about 23% of the potential price decline. 👇
But if you expand that to 12 orders, your coverage grows to almost 36%. That’s a 50% increase in buffer, giving your bot extra room to survive deeper corrections and still exit with a profit.
However, just like with the averaging orders’ size multiplier, there’s also a catch: adding more averaging orders will significantly raise your capital requirements.
For instance, while the setup with 10 averaging orders and a 2x size multiplier required around 737 $USDC, bumping that number to 12 orders pushes the capital needed to over $2,600. That’s a serious increase, so make sure your balance can handle it before scaling up.
Epilogue
Today, we reviewed a real example of how the DCA bot can be much more than just a safety net in volatile markets. It’s a fully automated trading tool that, when used wisely, can deliver serious profits, even outperforming the classic HODL strategy. And this case proves it: 470% APY on Bitcoin in just five months of live trading.
Of course, this tool is powerful, but like any powerful instrument, it can be a double-edged sword. That’s why it’s crucial to start with conservative setups, get comfortable with the basics, and only then scale into more advanced strategies. Once you’re comfortable with the core mechanics, you can start experimenting with more aggressive setups to scale your profits.
To speed up your learning curve, make sure to follow Max’s Telegram channel “DCA bot: Solana, Base + 30 CEXs by GoodCrypto.App” and subscribe to the GoodCrypto YouTube channel. You’ll find tons of case studies, bot configuration walkthroughs, and ideas for building your own high-performance strategies.
Good luck and may the profits be with you! 🍀