Learn more about the Standard DCA Out strategy on CALC
Learn what DCA is, why it can work better than timing the market, and how to customise your own dollar-cost average selling strategy with CALC.
What is DCA?
Since the creation of cryptocurrencies and even the stock market, people have tried to ‘time the market’ (i.e., pinpoint the ideal time to buy or sell crypto). In absence of a predicting the future, this has proven difficult — even for professional investors who spend all their time studying the market. In other words, few succeed with this strategy.
What is the alternative?
Enter Dollar Cost Averaging, known as DCA in both the crypto space and stock market realm. It refers to consistently investing a small, fixed amount of money, which over time may yield better results, while saving you time and your nerves. Here is how to do it.
Key Points
- Dollar Cost Averaging (DCA) is a strategy that allocates a fixed sum of money in regular intervals to buy or sell an asset. This is done in hopes of reducing the impact of asset price volatility and lowering the average cost per token over time
- The DCA method is a proven and popular accumulation strategy in both traditional financial markets and the crypto world
- CALC offers extra customisation if you want extra control over your strategy
- DCA is a great way to take profit over time an asset over time while taking on less risk
- You can also choose what you want to happen after each swap, for example have your assets be sent to different wallets after each swap.
How it works
Using sophisticated tools doesn't need to be complex, get started in just 4 easy steps.
How to set up a strategy with CALC
Step 1: Choose Assets
Choose between fiat via our on-ramp partners, or an on-chain stablecoin for strategy input then select the strategy output.
Please note that the KADO money and LOCAL money integrations are coming in Q4 2022 and Q1 2023. Until then CALC only supports USK and axlUSDC stablecoins on the Kujira network. Eventually you will be able to take profits directly into your bank account.
Step 2: Customise Strategy
Access our advanced customisation options like price skips to maintain full control over your strategy. Here you can set the sell amount each swap, purchase frequency as well as set slippage and a price floor.
Advanced features:
Start based on time
- Choose a date in the future and a time for the strategy to begin to execute
Start based on price
- Choose a price for the strategy to begin to execute
Set buy price floor
- CALC will not execute swaps if the price of the asset you are selling is lower than the price you set in this field. For example, If the price floor is set to $1.50 and the KUJI price drops below $1.50 the swaps that are scheduled to happen will be skipped and your strategy will extend an interval. This will continue until the price rises above the price floor.
Set slippage tolerance
- If the slippage exceeds your tolerance, the swap will fail, be skipped for that increment and your strategy length will increase by 1 increment. This is automatically set to 2%, but you can change it to anything you like between 0% and 100%. You can see if a strategy failed because of slippage on the "view performance" page of each strategy.
Step 3: Compose Strategy
This is where defi composability comes into play, you get to choose “What happens next” such sending to different wallets or (coming in the future) reinvesting.
Step 4: Confirm Strategy
CALC plays your strategy back to you in simple terms so that you can be sure of the execution before you approve.
Done!
Now you can sit back and relax while CALC does the heavy lifting for you. Be sure to check out the strategy performance page and stick to your strategy long term.
Topping up a strategy
Topping up your strategies ensures that your long term strategies can be well, long term. You can top up a strategy in 2 simple clicks.
Step 1: Click Top Up
You can top up from either the "My Strategies" page or the strategy "performance" page, both have the option of topping up.
Step 2: Choose your amount and confirm
Input the amount you would like to top the strategy up with, click confirm and then sign the transition. It really is that simple.
Done
No sit back and relax!
Frequently Asked Questions
What assets do you offer?
CALC is built on top of the Cosmos' first decentralized, permissionless, 100% on-chain order book style token exchange, FIN. This means that CALC supports all assets that are traded on FIN DEX. Some of the assets with low liquidity will not appear on the CALC UI until the community votes them in.
What happens if slippage is exceeded?
One of the many safety mechanisms that CALC puts in place is slippage which you can customise in advanced settings on step 2 of setting up the strategy.
If the slippage tolerance is exceeded then CALC will skip the swap for that interval and your strategy will last for 1 more interval.
Do you support Ledger?
Yes.
What happens if I cancel a vault?
If you cancel a vault, your remaining funds are returned to your wallet minus a small cancellation fee.
