OPEN-SOURCE SCRIPT
Krugman's Dynamic DCA
Updated
This script helps you create a DCA (dollar-cost averaging) strategy for your favorite markets and calculates the DCA value for each bar. This can be used to DCA daily, weekly, bi-weekly, etc.
Configuring the indicator:
-DCA Starting Price: the price you want to begin DCA'ing
-DCA Base Amount: the $ amount you will DCA when price is half of your starting price
-DCA Max Amount: the maximum amount you want to DCA regardless of how low price gets
The DCA scaling works exactly like the formula used to calculated the gain needed to recover from a given % loss. In this case it's calculated from the DCA Starting Price. The idea is to increase the DCA amount linearly with the increased upside potential.
Configuring the indicator:
-DCA Starting Price: the price you want to begin DCA'ing
-DCA Base Amount: the $ amount you will DCA when price is half of your starting price
-DCA Max Amount: the maximum amount you want to DCA regardless of how low price gets
The DCA scaling works exactly like the formula used to calculated the gain needed to recover from a given % loss. In this case it's calculated from the DCA Starting Price. The idea is to increase the DCA amount linearly with the increased upside potential.
Release Notes
*Updated panel nameRelease Notes
Added a minimum DCA amount to allow users to avoid extremely small DCA buys when the price is close to the dcaStartingPrice. Your DCA will never be smaller than this value as long as price is below the dcaStartingPrice.Release Notes
I've updated the DCA model to use a more simple linear pricing method. It still works very similar to the previous pricing method whereDCA Starting Price = Market price to begin DCA'ing
DCA Plateau Price = Market price where DCA amount stops increasing (i.e. when the DCA amount "plateaus")
DCA Min Amount/b] = The DCA amount when price initially crosses below the starting price
DCA Max Amount/b] = The DCA amount when price reaches or drops below the plateau price. The DCA amount will not increase beyond this value regardless of how far market price goes below the plateau price.
Release Notes
Added decimals to script variables to allow for DCA coins that are sub $1.Release Notes
Publishing script to update the chartOpen-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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