Today, I will show how OKX Futures DCA, one of OKX Bots can enable you to automate trades and maximize profits.
OKX is a renowned crypto exchange that ranks #6 on Coinmarketcap based on daily trading volume (as of 11/04/2023).
Also, OKX boasts over 6 million daily active users who are attracted to the platform because of its excellent services.
Impressively, OKX continues to improve its services to boost users’ experience hence the introduction of trading bots.
Let’s move on to see the bots.
List of OKX Bots
They include the
- Grid Bots
- DCA Bots
- Arbitrage Bots and
- Slicing Bots
Our focus in this post is the Futures DCA bot, one of the DCA bots that allows you to trade futures by using and automating the Martingale trading strategy.
Martingale is a popular trading strategy that is often used in FOREX trading.
It involves doubling your position after each losing trade to recoup losses and make a profit in the long run.
This strategy is based on the assumption that the probability of a win increases with each losing trade.
In other words, if you keep doubling down, you can eventually win and recover your losses. Interesting, right?
Although it is high-risk, Martingale is a high-reward strategy.
Also, it is best used when you have a high degree of confidence in the direction of the market, but may not be able to get the best entry point.
By doubling your position size after each losing trade, you can quickly recover your losses when the market eventually moves in your favour.
It’s like you are certain that the market is going to move, say in the upward direction and you enter the market then it starts to go down (like your village people are after you) but then you are still confident that is going to go up so you buy more positions.
So, when the market eventually starts going up, you make more profit. Cool!
This is how the OKX Futures DCA Works
First, the bot sets up a series of orders with increasing position sizes.
When a position is closed at a loss, the bot will automatically place a new order with a larger position size.
This process is repeated until the position is closed with a profit, at which point the bot will start a new cycle.
With Futures DCA, you can leverage up to 100x and take advantage of the market’s ups and downs.
Also, it allows traders to set up stop-loss orders to limit potential losses.
By setting up the stop-loss, traders can limit the risks according to their comfort level.”
Here’s a practical example of how the OKX Futures DCA Works
Assuming the current price of BTC is $25,000, and you decide to buy a long BTC contract with $10,000, and you set the take-profit at 5%.
With Futures DCA Martingale Bot, you can set up a DCA strategy to automatically buy more contracts if the price of BTC drops.
That is, you can set up the bot to buy an additional contract if the price drops 2% from your entry point, and another contract if the price drops an additional 4%.
Therefore, the bot initially buys one BTC contract at $25,000. If the price of BTC drops 2% to $24,500, the bot will automatically buy another contract at this lower price point, bringing the average entry price of the two contracts to $24,750.
If the price drops an additional 4% to $23,750, the bot will buy another contract, bringing the average entry price of the three contracts to $24,166.67.
Now, if the price of BTC bounces back to $25,375 and reaches your 5% take-profit order, the martingale will sell all three contracts for a profit.
Then it starts over a new cycle.
How to get started with the OKX Futures DCA
First, create an account on OKX using this link if you don’t have an account already.
Next, you verify your account and make a deposit.
Lastly, head over to “Trade,” click on “Trading bot” then “DCA Bots,” and finally “Futures DCA (martingale)”