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Vortex DCA Strategy

Vortex DCA is an intelligent dollar-cost averaging system that automatically accumulates positions during price dips while managing risk through geometric grid spacing and optional auto-hedging.

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How It Works

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The Basic Concept

Instead of buying all at once (and risking bad timing), Vortex DCA spreads your purchases across multiple price levels: 
Your Budget: $1000
         │
    ┌────┴────┐
    │ VORTEX  │
    │   DCA   │
    └────┬────┘
         │
    $250 at $100.00 (current price)
    $250 at $98.00  (2% dip)
    $250 at $95.00  (5% dip)
    $250 at $91.00  (9% dip)
         │
    Average Entry: Lower than $100!

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Geometric Grid Spacing

Unlike simple DCA, Vortex uses geometric spacing - orders are placed closer together near the current price and wider apart as price moves further away: 
Price    │ Order Size │ Distance from Previous
─────────┼────────────┼───────────────────────
$100.00  │ $100       │ Entry
$99.50   │ $120       │ 0.5% (tight)
$98.80   │ $144       │ 0.7% (wider)
$97.80   │ $173       │ 1.0% (wider still)
$96.50   │ $207       │ 1.3% (widest)
Why? Small dips are common - you want to catch them. Large dips are rare but significant - bigger orders at those levels maximize your advantage.

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Key Parameters

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Grid Configuration

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nr_clusters
integer
default:"4"
Number of buy orders in the grid. More clusters = more granular entries.Recommended:
  • Conservative: 3-4 clusters
  • Moderate: 4-5 clusters
  • Aggressive: 5-6 clusters
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outer_distance
float
default:"0.02"
How far from current price to place the furthest order (as decimal).0.02 = 2% below current priceExample: If price is 100,outerorderat100, outer order at 98
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ratio_power
float
default:"1.6"
Controls the geometric curve of order spacing.
  • 1.0 = Linear (equal spacing)
  • 1.2 = Slight curve
  • 1.6 = Moderate curve (recommended)
  • 2.0 = Aggressive curve (orders clustered near entry)
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wallet_exposure
float
default:"0.40"
Maximum percentage of wallet to use per symbol.0.40 = 40% of available balance
Higher exposure = higher profit potential but also higher risk. Start with 10-20% for new users.

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Take Profit Settings

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minimum_tp
float
default:"0.002"
Minimum take-profit target (as decimal).0.002 = 0.2% profit targetNote: Actual TP is calculated dynamically based on fees and position size.
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grid_refresh_interval
integer
default:"120"
Seconds between grid recalculations.The grid follows price - if price moves significantly, orders are repositioned.

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Position Sizing

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initial_entry_size
float
default:"0.01"
Size of the first entry as percentage of wallet exposure.
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qty_multiplier
float
default:"1.2"
Each subsequent order is this multiple of the previous.1.2 = 20% larger per levelExample: 100→100 → 120 → 144→144 → 173…

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Position Recovery: Virtual Chunking

Virtual Chunking is Vortex DCA’s secret weapon for recovering underwater positions.

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What Is It?

When a position goes significantly underwater (e.g., 8%+ loss), Virtual Chunking activates: 
Position: 100 units at $100 (now trading at $92)
Loss: -8%
         │
    ┌────┴────┐
    │ VIRTUAL │
    │CHUNKING │
    └────┬────┘
         │
    Split into 5 "chunks" of 20 units each
    Target small profit (0.3%) per chunk
    Use "attack" orders to average down

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How It Works

  1. Detection: Position underwater exceeds threshold (default 8%)
  2. Chunking: Virtually split position into N pieces
  3. Attack Orders: Place large buy orders to average down
  4. Small TPs: Take 0.3% profit on each chunk
  5. Repeat: Continue until position recovered

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Virtual Chunking Parameters

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virtual_chunking_enabled
boolean
default:"false"
Enable the position recovery system.
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virtual_chunking_threshold_pct
float
default:"8.0"
Percentage underwater before chunking activates.
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virtual_chunking_chunk_count
integer
default:"5"
Number of virtual chunks to create.
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virtual_chunking_profit_target
float
default:"0.003"
Profit target per chunk (0.3%).
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virtual_chunking_attack_multiplier
float
default:"2.5"
Size multiplier for “attack” averaging orders.

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Auto-Hedging

Auto-hedging opens an opposing position when your main position is in danger, protecting against further losses.

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When Does It Trigger?

Trigger Conditions (OR):
├── Drawdown > 10% (configurable)
└── Distance to liquidation < 10% (configurable)

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How It Works

Main Position: LONG 100 units, -12% underwater
         │
    ┌────┴────┐
    │  HEDGE  │
    │ TRIGGER │
    └────┬────┘
         │
    Open SHORT position (30% of main size)
    Set TP at 0.3% profit
    Close hedge when main recovers

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Auto-Hedge Parameters

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vortex_autohedge_enabled
boolean
default:"false"
Enable auto-hedging.
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vortex_autohedge_ratio
float
default:"0.3"
Hedge size as percentage of main position. 0.3 = 30%
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vortex_autohedge_on_drawdown_pct
float
default:"0.10"
Trigger hedge when drawdown exceeds this percentage.
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vortex_autohedge_on_liquidation_distance_pct
float
default:"0.10"
Trigger hedge when within this distance of liquidation.
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vortex_autohedge_tp_target
float
default:"0.003"
Take-profit target for hedge position (0.3%).

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Example Configurations

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Conservative (Beginners)

{
  "nr_clusters": 4,
  "outer_distance": 0.06,
  "ratio_power": 1.2,
  "wallet_exposure": 0.15,
  "minimum_tp": 0.003,
  "qty_multiplier": 1.2,
  "virtual_chunking_enabled": false,
  "vortex_autohedge_enabled": false
}
Characteristics:
  • Wide grid (6% outer distance)
  • Low wallet exposure (15%)
  • Higher minimum TP (0.3%)
  • No advanced recovery features

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Balanced (Intermediate)

{
  "nr_clusters": 4,
  "outer_distance": 0.04,
  "ratio_power": 1.4,
  "wallet_exposure": 0.30,
  "minimum_tp": 0.002,
  "qty_multiplier": 1.4,
  "virtual_chunking_enabled": true,
  "virtual_chunking_threshold_pct": 8.0,
  "vortex_autohedge_enabled": true,
  "vortex_autohedge_on_drawdown_pct": 0.10
}
Characteristics:
  • Moderate grid (4% outer distance)
  • Medium wallet exposure (30%)
  • Position recovery enabled
  • Auto-hedging on 10% drawdown

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Aggressive (Experienced)

{
  "nr_clusters": 5,
  "outer_distance": 0.02,
  "ratio_power": 1.6,
  "wallet_exposure": 0.45,
  "minimum_tp": 0.0015,
  "qty_multiplier": 1.8,
  "virtual_chunking_enabled": true,
  "virtual_chunking_threshold_pct": 5.0,
  "vortex_autohedge_enabled": true,
  "vortex_autohedge_on_drawdown_pct": 0.08
}
Characteristics:
  • Tight grid (2% outer distance)
  • High wallet exposure (45%)
  • Quick recovery activation (5%)
  • Early hedging (8% drawdown)

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Best Practices

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Do’s

Start small - Use 10-20% wallet exposure until comfortable
Pick liquid symbols - Higher volume = better fills
Use auto-hedging for capital > $1000
Monitor daily during learning period

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Don’ts

Don’t use 100% wallet exposure - leave room for recovery
Don’t trade illiquid symbols - wide spreads eat profits
Don’t ignore positions for weeks - check at least weekly

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Troubleshooting

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”Bot not placing orders”

  1. Check wallet exposure - may have insufficient balance
  2. Verify symbol is supported on your exchange
  3. Check if price is within your no_entry_above/no_entry_below limits

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”Position keeps growing without TP”

  1. Market is trending strongly against you
  2. Consider enabling auto-hedging
  3. Check if virtual chunking is enabled for recovery

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”Orders keep getting cancelled”

  1. Grid refresh is repositioning orders as price moves
  2. Normal behavior - orders follow price
  3. Reduce refresh_threshold for less frequent updates

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Next Steps

Bot Configuration

Full parameter reference

Risk Management

Learn risk management