Dollar-Cost-Averaging (DCA) Bots allow you to automatically buy and/or sell crypto at regular intervals. Once a Base Order is open, the bot will open Safety Orders when the price goes against your expectations. This will allow you to improve your average entry size.
Nevertheless, it is impossible to identify the "exact" amount of allocation to use in these systems to be 100% efficient....but what can be done is taking all of the historical data, compiling it, and providing a great snapshot of what investment is likely to be required for this specific strategy.
Mizar developed the Expected Investment calculation tool to support users in taking out as much of the legwork and guesswork as possible.
Please remember the Expected Investment is based on historical data and has no guarantee of future results or used allocations, your investments are your responsibility. Also, do not consider this as financial advice, but rather an assumption based on statistics.
How is the Expected Investment calculated?
If you input the Base Order Size and Max. n. of positions, Mizar calculates what would have been the average Open Positions size (sum of all the Base and Safety Orders sizes) you would have had over the last 30 days, based on the actual trader performance.
If you input the Expected Investment, instead, Mizar calculates back what Base Order Size and Max. N. of Positions you would have needed to invest that expected amount, based on the actual trader performance.
What does this mean in practice?
Let's say the bot can open up to 1 Safety Order. Based on the last 30D statistics, the bot closed 50% of its positions at Base Order (that means, no Safety Order has been triggered) and 50% at Safety Order 1 (that means, an extra safety order has been opened on top of the base order). The Safety Order size is the same as the Base Order.
Based on these statistics and your input, the expected investment can be calculated.
If you input 100 USDT and the max n.of positions is 10, then your Expected Investment will be calculated as follow:
100x10x0.5 + 100x10x0.5x2 = 1500 USDT
The first term takes into account the positions (50% chance) closed at Base Order.
The second term takes into account the positions (50% chance) closed at Base Order + Safety Order 1.