Does this percentage include the initial entry and all DCA orders?
Yes β the total_percent_investment_per_trade setting in MagicTradeBot applies to the entire position, meaning it covers both the initial entry and all subsequent DCA orders. This ensures that your total capital at risk for a single trade stays within the defined percentage of your account balance, regardless of how many DCA layers are executed.
πΉ 1οΈβ£ How It Works
Initial Order
- The very first trade placed in a DCA sequence is counted toward the total exposure limit
- Its size is either calculated automatically (
auto_calculate_initial_amount = true) or fixed (auto_calculate_initial_amount = false)
Subsequent DCA Orders
- Each DCA layer is added to the total exposure
- The bot ensures that the sum of initial + all DCA orders never exceeds the
total_percent_investment_per_tradelimit
Cumulative Risk Management
- This approach prevents overexposure, even if multiple DCA orders are triggered in volatile market conditions
- It ensures that your total capital at risk is always predictable and controlled
πΉ 2οΈβ£ Practical Example
Account Balance: $1,000 DCA Settings:
auto_calculate_initial_amount: true
total_percent_investment_per_trade: 5
max_orders: 3
size_multiplier: 1.2
Step 1 β Maximum Allowed Exposure
- 5% of $1,000 β $50 maximum total exposure for this trade
Step 2 β Calculate DCA Orders
- Initial order = $13.64
- DCA 1 = $16.36
- DCA 2 = $20.00
Step 3 β Total Exposure
- Initial + DCA 1 + DCA 2 = $50 β exactly matches the total_percent_investment_per_trade limit
The entire position β initial order + all DCA orders β is counted in the 5% allocation. This ensures no hidden overexposure occurs as DCA layers are triggered.
πΉ 3οΈβ£ Key Benefits
| Benefit | Description |
|---|---|
| Full Coverage | Limits the total risk of the entire trade, not just the first order |
| Safe Scaling | DCA layers are automatically scaled to stay within the allowed percentage |
| Predictable Exposure | Makes overall trade risk transparent and manageable |
| Supports Both Beginners & Advanced Traders | Provides built-in safety while allowing complex DCA strategies |
πΉ 4οΈβ£ Key Takeaways
total_percent_investment_per_tradeincludes the initial entry and all DCA orders- Ensures that total position risk stays within the predefined percentage of your balance
- Protects the account from overexposure even in highly volatile markets
- Works seamlessly with auto-calculated initial amount, size multiplier, and max orders to maintain controlled DCA execution
In short, this setting acts as a cap on the entire position, guaranteeing safe and predictable DCA trading.