How to?
Info: avoid/understand overfitting
The DCA script's first order is called the Base Order (BO). All subsequent orders are Safety Orders (SOs). For 3Commas, the BO size is determined by your settings within 3Commas—TradingView can't send this value. However, the BO size is still important as it's used to calculate each SO's size. For SOs, it's different: their volume isn't set in 3Commas but comes from TradingView.
Ensure that the Base Order (BO) size in 3Commas matches the one in TradingView.
The number of Safety Orders (SOs). This determines how many SOs can be used after the Base Order (BO). For example, if set to "5", vyn premium will execute the BO of $100, followed by up to 5 more orders, with their sizes determined by your volume scale settings.
Safety Order Volume Scale determines how the size of each Safety Order (SO) increases relative to the previous one. It's a multiplier that progressively increases the volume of each subsequent SO.
For example, if your Base Order is $100 and your Safety Order Volume Scale is set to 1.5:
This scaling helps to average down your position more effectively as the price drops, potentially improving your chances of profiting when the price rebounds.
It's important to choose this value carefully, considering your risk tolerance and available capital. A higher scale will result in larger orders as you progress through your SOs, which can be beneficial for averaging down but also increases your overall investment.
Take Profit is the percentage gain at which you want to close your position and realize your profits. It's calculated from the average entry price of all your orders (Base Order + Safety Orders).
For example, if your Take Profit is set to 5%, the bot will sell your entire position when the current price is 5% above your average entry price. This helps to secure profits and automate your exit strategy.
Please continue in the “Alerts for 3Commas” Section.
Please continue in the “Alerts for Altrady” Section.
The minimum number of bars to wait before placing a new order.
This is a valuable safety feature for more conservative trading. The worst market structure for vyn premium is a slow downward grind. In this scenario, vyn might execute too many safety orders too close to each other. This happens because low volatility means the volatility-based minimum distance doesn't provide enough safety to wait for better entry opportunities. Stretching the minimum distance between safety orders on a horizontal axis (time) provides additional security in three-dimensional space.
Percentage-based SO Distance is the fixed price drop required before placing a new Safety Order.
It's important to note that this feature will bypass all other technical analysis (TA). When activated, it becomes a fixed buy order that executes after each 20% drop, regardless of any other market conditions or indicators. This means it will place orders even if other aspects of your strategy might suggest otherwise.
While this can provide a consistent averaging down strategy, it also means you're not adapting to changing market conditions. Use this feature cautiously and ensure it aligns with your overall risk management strategy.