What happens if auto_calculate_initial_amount is set to false?

When auto_calculate_initial_amount is set to false in MagicTradeBot, the bot does not calculate the initial DCA order size automatically. Instead, it relies entirely on the fixed InitialTradeAmount defined in your trading.yaml file. This gives you full control over the starting order size, but it requires careful manual calculation to ensure your total exposure remains safe.

🔹 1️⃣ How It Works

  1. Initial Order

    • The bot places the initial order exactly as defined in InitialTradeAmount
    • No adjustment is made based on your account balance or total DCA allocation

  2. Subsequent DCA Orders

    • DCA orders are still calculated using size_multiplier and max orders, but starting from the fixed initial amount

  3. Total Exposure

    • Because the initial order is fixed, the sum of all DCA orders may exceed your desired total investment if InitialTradeAmount is set too high
    • Manual oversight is required to prevent overexposure or excessive risk, especially with leveraged trades

🔹 2️⃣ Practical Example

Account: $1,000 DCA Settings:

auto_calculate_initial_amount: false
InitialTradeAmount: 50
max_orders: 2
size_multiplier: 1.2

Step 1 – Initial Order

  • Initial order = $50 (fixed, not calculated)

Step 2 – DCA 1

  • DCA 1 = $50 × 1.2 = $60

Total Exposure

  • $50 + $60 = $110 → 11% of account
  • Risk may exceed safe limits if your total percent investment per trade was intended to be lower

With auto_calculate_initial_amount = false, you are fully responsible for ensuring the initial order is safe relative to your balance and DCA configuration.

🔹 3️⃣ Key Implications

Aspect Auto-Calculate True Auto-Calculate False
Initial Order Calculated based on balance & total DCA exposure Fixed as defined in InitialTradeAmount
Risk Control Automatically limits total exposure Manual; can exceed risk limits
Ease of Use Beginner-friendly Requires careful planning
Flexibility Adapts to account balance changes Static; must update manually if balance changes

🔹 4️⃣ Key Takeaways

  • Setting auto_calculate_initial_amount to false disables automatic risk-aware sizing of the initial DCA order
  • The bot will use the fixed value from trading.yaml as the starting order
  • You must manually ensure initial order + DCA orders stay within safe exposure limits
  • Suitable for advanced traders who want precise control and are confident in their risk management

In short, disabling automatic calculation trades convenience and safety for manual control. Beginners are recommended to keep it enabled, while experienced traders may use fixed initial amounts for strategic customization.

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