What does total_percent_investment_per_trade control?
The total_percent_investment_per_trade setting in MagicTradeBot is a key parameter in automatic DCA position sizing. It defines the maximum portion of your account balance that can be used for all DCA orders combined in a single trade, ensuring that your exposure remains controlled and risk is managed effectively.
πΉ 1οΈβ£ How It Works
Caps Total Exposure
- This setting limits the sum of the initial order and all subsequent DCA orders
- Ensures that even if the market triggers all DCA levels, your total investment does not exceed the defined percentage of your balance
Integrates with Other DCA Parameters
Works together with:
auto_calculate_initial_amountβ determines initial order size dynamicallymax_ordersβ total number of DCA orders allowedsize_multiplierβ scales each subsequent DCA order
- Together, these parameters ensure safe, controlled scaling of DCA orders
Risk Management
- Directly controls the maximum capital at risk per trade
Prevents accidental overexposure, especially important for:
- High-leverage trading
- Volatile coins
- Multiple trades running simultaneously
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 Calculate Total Allocation
- 5% of $1,000 β $50 maximum for this trade
Step 2 β Calculate Initial and DCA Orders
- Initial order = $50 Γ· (1 + 1.2 + 1.2Β²) β $15.15
- DCA 1 = $15.15 Γ 1.2 β $18.18
- DCA 2 = $18.18 Γ 1.2 β $21.67
- Total exposure β $50 β matches total_percent_investment_per_trade
This ensures that no matter how many DCA orders are triggered, the total investment never exceeds 5% of your account balance, keeping your trade safe.
πΉ 3οΈβ£ Key Benefits
| Benefit | Description |
|---|---|
| Limits Risk Per Trade | Prevents overexposure in volatile markets |
| Safe Scaling | Ensures DCA orders scale correctly without exceeding total allocation |
| Consistent Risk Management | Total investment is predictable and controlled |
| Flexible | Can be adjusted for conservative (2β3%) or aggressive (10%+) strategies |
πΉ 4οΈβ£ Key Takeaways
total_percent_investment_per_tradeis the risk cap for each trade- Works with automatic initial amount calculation, size multiplier, and max orders to safely scale DCA positions
- Ensures total exposure never exceeds your desired percentage of the account, even if all DCA orders are executed
- Essential for disciplined, risk-managed DCA trading, especially in volatile markets
In short, this setting is the main safety limiter for DCA trades, allowing MagicTradeBot to manage risk automatically while executing multiple DCA orders.