Prevent DCA / Only Add In Profit
Prevent DCA / Only Add In Profit
The Prevent DCA / Only Add In Profit option has been designed for those using Prop Firms that have rules against DCA Trading. For anyone who doesn’t know what DCA is. DCA Trading occurs when you add to your position when you are in a losing trade. The goal with this style of trading is to bring down your average position price.
Some Prop Firms prohibit this style of trading because when you are adding onto an already losing position you are more likely to multiply your losses and blow your accounts very easily.
Minimum Tick Threshold
Once you select Prevent DCA you will need to determine your Minimum Tick Threshold. This is how many ticks into profit your trade must be in order to add onto a position.
⤷ 10 Ticks is recommended for most traders
⤷ 15-20 Ticks for faster moving charts
⤷ Note that the Auto Adds submit a market order which does not have a guarantee price fill. On instruments like NQ, it is recommended to go higher to prevent accidental DCA.
Hint:
If you are using the Auto Add options and your prop firm prohibts DCA, it is recommended to keep this option selected. It will help prevent accidental rule breaking.