What is order_percent?

In Grid DCA strategies, order_percent is a key parameter that determines how much of your allocated capital is used for each individual DCA order. It directly affects position sizing, average entry, and risk exposure.

Here’s a detailed explanation.

1. Definition of order_percent

  • order_percent represents the percentage of the allocated trade capital to be used for each grid or DCA order.
  • It is expressed as a percentage of the total capital allocated to the trade, not the total account balance.

Example:

  • Total DCA allocation: $1,000
  • order_percent = 20% → Each DCA order = $200

2. How It Works in Grid DCA

  1. Parent Position: Initial order placed using its own defined percentage (usually separate from order_percent).
  2. Grid DCA Orders: Each subsequent DCA order uses order_percent of allocated DCA capital.
  3. Final DCA (optional): Can be configured with a different multiplier, but still based on the same allocation logic.

Example Timeline:

Order Type Quantity (order_percent) Notes
Parent $200 Initial entry
Grid 1 $200 First DCA
Grid 2 $200 Second DCA
Final DCA $200 Optional, may have multiplier

3. Effect on Average Entry

  • Higher order_percent → Each DCA order has more weight → Average entry drops faster → Required recovery percentage decreases.
  • Lower order_percent → Smaller DCA impact → Average entry moves gradually → Requires more market movement to recover.

Illustration:

Order Price Quantity (order_percent)
Parent $100 20%
Grid 1 $95 20%
Grid 2 $90 20%
  • Average entry: Weighted average using order_percent quantities
  • Larger order_percent per grid → more influence on lowering average entry

4. Relationship With Other Parameters

  1. max_orders

    • Total capital used = order_percent × max_orders
    • Helps prevent overexposure

  2. Multipliers / Final DCA

    • Multipliers can increase the effective percentage of capital for deeper grids
    • Final DCA may be 1.5–2x order_percent

  3. Deviation_percent

    • Determines grid spacing, while order_percent determines how much capital each spaced grid order uses

  4. Interval_minutes

    • Controls timing of DCA execution, but order_percent controls size per execution

5. Risk Considerations

  • High order_percent

    • Faster average entry reduction
    • Higher exposure per grid → riskier in leveraged or volatile markets

  • Low order_percent

    • Slower recovery
    • Less immediate capital risk
    • May leave positions under-averaged if trend continues

Tip: Adjust order_percent according to account size, leverage, volatility, and number of grid levels.

Trade Type Suggested order_percent
Spot trades, stable asset 15–25%
Leveraged trades (5–10x) 5–15%
Highly volatile coins 5–10%
  • Use smaller percentages for high leverage or high volatility to reduce exposure.
  • Combine with max_orders to control total capital allocation.

7. Key Takeaways

  1. order_percent determines the size of each DCA/grid order relative to allocated trade capital.
  2. Higher percentages accelerate average entry reduction, lower recovery percentage, but increase exposure.
  3. Lower percentages reduce exposure but slow down break-even and TP achievement.
  4. Works in combination with max_orders, deviation_percent, multipliers, and interval_minutes for balanced risk management.

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