Trading Concept
Dollar Cost Averaging
An accumulation strategy that invests a fixed dollar amount at regular intervals regardless of price, reducing the impact of entry timing.
Dollar cost averaging (DCA) removes the timing decision. Instead of picking the "right" entry price, the strategy invests a fixed amount on a fixed schedule — daily, weekly, monthly. When prices are high, the fixed amount buys fewer units. When prices are low, it buys more. Over time, the average cost per unit converges toward the average price.
DCA is not a trading strategy in the active sense. It is an accumulation strategy — appropriate for long-term positions where the user believes the asset will appreciate but does not want to time the entry. It reduces regret (no single bad entry point) at the cost of giving up the possibility of a single great one.
In the botwir3 builder, DCA is an execution style within the strategy configuration. The user sets the interval, the amount per interval, and the platform. The gate validates each scheduled purchase against the configured constraints. The ledger records each execution, building a complete cost basis audit trail.