YouTube video (Kosta Ouzas) explaining a DCA-style trading strategy that uses calibrated safety orders down to a "power law support." The approach deploys small initial capital and increases allocation as price falls (not a full Martingale). The algorithm blends mechanical DCA (minimum DCA position) with technical indicators to detect trends and local bottoms, allowing it to dive deeper into positions when indicators show opportunity.
Chapters
What do you do when the market goes down? Well, what we do is we've actually calibrated safety orders all the way down to the power law support, which means that we're deploying a small amount of capital at the beginning and then deploying more and more capital as the price goes down. It's not a Martingale strategy because it's not the same volume as a Martingale strategy, it's much less. But it is a DCA style strategy. The guys can also explain to you what is really interesting about. You'll see that we have really good local bottom. So the technicals that we're using indicators in order to enter and exit positions are really, really powerful. If you were to use mechanical DCA logic, it wouldn't get you this far down and it wouldn't be capturing these local bottoms. It will kind of be like here, here, here. But what we're doing with our algorithms, our algorithm is smart enough to go give me the minimum DCA position, but if I can see a trend, I'll go for the technical. So it'll dive deeper into the position. And that's why you see it buying those local bottom.
