Does this percentage include the initial entry and all DCA orders?

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  • Does this percentage include the initial entry and all DCA orders?

Yes — the total_percent_investment_per_trade setting in MagicTradeBot applies to the entire position, meaning it covers both the initial entry and all subsequent DCA orders. This ensures that your total capital at risk for a single trade stays within the defined percentage of your account balance, regardless of how many DCA layers are executed.

🔹 1️⃣ How It Works

  1. Initial Order

    • The very first trade placed in a DCA sequence is counted toward the total exposure limit
    • Its size is either calculated automatically (auto_calculate_initial_amount = true) or fixed (auto_calculate_initial_amount = false)

  2. Subsequent DCA Orders

    • Each DCA layer is added to the total exposure
    • The bot ensures that the sum of initial + all DCA orders never exceeds the total_percent_investment_per_trade limit

  3. Cumulative Risk Management

    • This approach prevents overexposure, even if multiple DCA orders are triggered in volatile market conditions
    • It ensures that your total capital at risk is always predictable and controlled

🔹 2️⃣ Practical Example

Account Balance: $1,000 DCA Settings:

auto_calculate_initial_amount: true
total_percent_investment_per_trade: 5
max_orders: 3
size_multiplier: 1.2

Step 1 – Maximum Allowed Exposure

  • 5% of $1,000 → $50 maximum total exposure for this trade

Step 2 – Calculate DCA Orders

  • Initial order = $13.64
  • DCA 1 = $16.36
  • DCA 2 = $20.00

Step 3 – Total Exposure

  • Initial + DCA 1 + DCA 2 = $50 → exactly matches the total_percent_investment_per_trade limit

The entire position — initial order + all DCA orders — is counted in the 5% allocation. This ensures no hidden overexposure occurs as DCA layers are triggered.

🔹 3️⃣ Key Benefits

Benefit Description
Full Coverage Limits the total risk of the entire trade, not just the first order
Safe Scaling DCA layers are automatically scaled to stay within the allowed percentage
Predictable Exposure Makes overall trade risk transparent and manageable
Supports Both Beginners & Advanced Traders Provides built-in safety while allowing complex DCA strategies

🔹 4️⃣ Key Takeaways

  • total_percent_investment_per_trade includes the initial entry and all DCA orders
  • Ensures that total position risk stays within the predefined percentage of your balance
  • Protects the account from overexposure even in highly volatile markets
  • Works seamlessly with auto-calculated initial amount, size multiplier, and max orders to maintain controlled DCA execution

In short, this setting acts as a cap on the entire position, guaranteeing safe and predictable DCA trading.

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