> For the complete documentation index, see [llms.txt](https://botlyz.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://botlyz.gitbook.io/docs/english/smart-dca.md). # Smart DCA **Smart DCA** is an **exclusive**, **advanced** Botlyz strategy. In one sentence: **DCA** ("Dollar-Cost Averaging") means investing a **fixed amount at regular intervals**, instead of putting everything in at once. Smart DCA does this automatically, across a **basket of several tokens** at the same time, and lets you **test the outcome over several years of history** before you decide. > **Important**: this page explains only the **mechanics** of the strategy. It contains **no promise of gains**, **no recommendation to buy** any token, and does **not** constitute investment advice. Trading involves a **risk of loss up to the entire capital**, and past performance does not guarantee future performance. See [Risk warning](/docs/english/avertissement-risques.md). > **Access**: Smart DCA is an **exclusive** feature and may be **restricted** for now. Depending on your account, it may not be visible or available immediately. *** ## DCA, plainly Investing "all at once" fully exposes you to the price at a single moment. **DCA** instead spreads your purchases over time: a fixed amount, again and again, at a regular cadence. You therefore sometimes buy higher, sometimes lower, and your entry price becomes an **average** of the prices seen over the period. Smart DCA takes this principle and **automates** it across a **basket** of tokens. You do **not** have to place the purchases yourself: once the configuration is set, they are **scheduled** at the chosen cadence. *** ## What you configure A Smart DCA configuration has six settings. ### 1. The basket (sectors or tokens) You choose **what** to accumulate. Three ways to build your basket: * **By sectors**: ready-to-click groups of tokens, for example Majors (BTC/ETH), Layer 1, Layer 2, DeFi, Memecoins, AI & DePIN, Oracles & infra, Tokenized stocks, ETFs / indices, Forex, Commodities & metals. * **By individual tokens**: select one or more tokens one by one. * **By presets**: ready-made baskets (for example BTC / ETH, Top L1, DeFi blue chips). You can combine these approaches. The choice of tokens is entirely yours: Botlyz does not recommend any particular token. ### 2. The monthly budget You set a **monthly budget** in dollars (the total amount the strategy devotes to purchases over a month). This budget stays **constant**: whatever cadence you choose, it is **spread** across that month's purchases. ### 3. The per-token allocation You split the budget **between the tokens** in your basket (a weighting per token). For example, you can give more weight to some tokens than others. This split determines the share of the budget dedicated to each token at each purchase. ### 4. The purchase cadence You choose **how often** purchases happen: * **Daily** (every day) * **Every 2 days** * **Every 3 days** * **Weekly** (once a week) * **Monthly** (once a month) Since the monthly budget is constant, a tighter cadence splits each purchase more finely (smaller amounts, more often); a wider cadence groups the budget into larger, less frequent purchases. ### 5. The direction (Bull or Short) * **Bull**: **long** accumulation (you build a position that gains if the price rises). * **Short**: **short** accumulation (a position betting on a decline). ### 6. The leverage You set a **leverage** (a multiplier of position size). Leverage increases exposure, so it **amplifies losses as much as gains** and **brings the liquidation threshold closer**. At 1x leverage, there is no leverage effect. See [Risk parameters](/docs/english/parametres-de-risque.md). *** ## The multi-year backtest Before deciding, you can **test** your configuration over a **long history** (several years of daily data when that history is available for the basket's tokens). The backtest replays your scheduled purchases day by day and shows how the configuration would have behaved over the chosen period. > **Important**: a backtest is a **simulation** of the past. It **guarantees nothing** for the future: a configuration that behaved well in simulation may underperform live. See [Backtest](/docs/english/backtest.md). ### Liquidation modeling (cross-margin) Because Smart DCA can use **leverage**, the backtest includes a **cross-margin liquidation model**, modeled on how Lighter works (a **single collateral** shared by the whole basket). Concretely, on each simulated day, the model compares the account's **equity** (available capital plus the value of positions) against the required **maintenance margin** level, computed from each market's **real maintenance rates**. If equity falls below that threshold, the basket is **liquidated** in the simulation, as would happen live. This prevents a high-leverage backtest from appearing to survive a collapse that would, in practice, have triggered a liquidation. > **Note**: for the **Short** direction, the backtest does not model the **funding** of short positions; a short's simulated result is therefore **optimistic** relative to live. *** ## What Smart DCA does, and does not do * **Does**: schedule regular fixed-amount purchases across a basket, at the cadence, direction and leverage you defined; simulate all of it over a long history with a liquidation model. * **Does not**: pick tokens for you, predict prices, guarantee an outcome, or spare you from understanding the risk of loss and liquidation. *** ## Key points * **Botlyz is a software publisher**, not a fund manager or financial advisor. * **Non-custodial**: you keep full control of your funds; connected API keys are **trade-only** (no withdrawal possible). * **You sign your own** configuration and remain solely responsible for your decisions. * **Leverage exposes you to liquidation**: a loss can go up to the entire margin committed. * **Always test with a small capital** before increasing your exposure. See also [Strategy overview](/docs/english/vue-d-ensemble.md) and [Fees](/docs/english/frais.md). *** ## Frequently asked questions ### What is DCA? DCA ("Dollar-Cost Averaging") means investing a **fixed amount at regular intervals** rather than all at once. Your purchases are spread over time, and your entry price becomes an **average** of the prices seen over the period. ### Do I have to place the purchases myself? No. Once the configuration is set (basket, budget, allocation, cadence, direction, leverage), the purchases are **automated** at the chosen cadence. You do not have to trigger them manually. ### Can I accumulate several tokens at once? Yes. That is the whole point of Smart DCA: a **basket** of several tokens, which you build by sectors, by individual tokens, or via presets, with an **allocation** (weighting) per token. ### How is this different from a "classic" DCA? A classic DCA often covers a single asset. Smart DCA manages a **multi-token basket**, offers several **cadences**, a **direction** (Bull or Short), a **leverage**, and a **multi-year backtest** that accounts for **cross-margin liquidation**. ### Does the backtest guarantee future results? No. The backtest is a **simulation** of the past. It is neither a forecast nor a promise: real performance can differ, sometimes significantly, from simulated results. ### Is leverage mandatory? No. You can stay at **1x** (no leverage effect). Higher leverage amplifies losses as much as gains and brings the liquidation threshold closer. ### Is Smart DCA available to everyone? It is an **exclusive**, **advanced** strategy that may be **restricted** depending on your account. It may therefore not be visible or available immediately. --- # Agent Instructions This documentation is published with GitBook. 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