Dollar Cost Averaging (DCA)

Atmos DCA is scheduled to launch by the end of Q1 2025, bringing users a powerful and intuitive way to automate their trading.

DCA, or Dollar-Cost Averaging, is an investment strategy where an investor divides the total amount of money to be invested into periodic purchases of a target asset. This method is designed to reduce the impact of volatility on the overall purchase. Instead of trying to time the market, DCA ensures consistent investment over time, which can be particularly effective in unpredictable or fluctuating markets.

How Does DCA Work

When you create a DCA order, your tokens are transferred from your wallet to a contract-owned object. For example, if you choose to use $USDC to DCA into $SUPRA, the entire specified amount of $USDC is deposited into your DCA object vault.

The first order executes immediately after your DCA position is created, while the remaining orders execute at your selected time intervals. For instance, if you decide to use 1,000 $USDC to DCA into $SUPRA daily over 10 days, the first order of $100 USDC to $SOL will be executed right after the DCA creation. Subsequently, there will be 9 more daily orders of $100 USDC to $SOL.

This ensures that the investment is spread over time, taking advantage of market fluctuations.

When To DCA?

Bear Market Accumulation

In bear markets, predicting price bottoms is nearly impossible. Instead, stagger your purchases (e.g., weekly over six months) to average your entry price. For example, during the 2018–2019 bear market, using DCA on BTC when RSI dipped below 30 resulted in an average price of ~$6,000 per BTC. This approach mitigates losses, avoids emotional pitfalls, and can yield significant gains during market recoveries.

Bull Market Profit Taking

DCA isn't just for buying in bear markets—it’s also great for selling in bull markets. Instead of selling your entire position at once, spread your sales over time to avoid missing potential gains if prices surge further. This strategy balances risk and reward, enabling steady profit realization.

Splitting Large Orders

Large market orders can negatively impact prices, especially during low liquidity. DCA minimizes market pressure by splitting orders, securing better average prices. Tools like Jupiter's DCA enable intervals as short as one minute, effectively mimicking a TWAP strategy used by institutional investors.

Selling Low-Liquidity Tokens

For low-liquidity tokens, selling in chunks with DCA reduces downward price pressure and optimizes returns, making it a safer way to exit positions without heavy losses.

How To DCA

  • Select Tokens: Choose the token you are allocating and the token you want to purchase on the DCA terminal.

  • Enter Amount: Specify the amount of the token to allocate for DCA orders in the provided field.

  • Set Frequency & Duration: Configure the frequency (e.g., daily, weekly) and duration (e.g., over 10 days) of the DCA orders.

  • Review Order Summary: Double-check the order details. If everything looks correct, click the Start DCA button.

  • Confirm Transaction: Approve the wallet notification to submit the DCA order.

  • Receive Notifications: A toast notification will appear in the lower-left corner, indicating when the transaction has been sent and completed.

  • Monitor Active DCAs: Once confirmed, your new DCA order will appear in the Active DCAs section below the terminal.

  • Track Progress: Expand the Active DCAs to review progress in the Overview tab or check individual orders in the Order tab.

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