WHAT IS DCA ?

How DCA works ?

If DCA is executed as a planned, structured entry or within a controllable risk range, it can help achieve a more favorable average entry price.

Depending on the number of DCA attempts and the position size, the overall position can grow rapidly, significantly increasing exposure to risk.

Due to the risks associated with the second point, some Propfirms prohibit the use of DCA strategies.

DCA (Dollar-Cost Averaging) refers to the strategy in which a trader adds to their position when the market moves against their existing position. This approach adjusts the average entry price in a more favorable direction.