> For the complete documentation index, see [llms.txt](https://docs.surgecardano.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.surgecardano.com/tutorials/7.-dca-strategy.md). # 7. DCA strategy Buy or sell a fixed amount on a schedule, and backtest the plan before you commit any ADA. {% embed url="" %} Nobody times the bottom. Dollar-cost averaging (DCA) buys a fixed amount on a fixed schedule, so your entry price averages out over the ups and downs. Surge runs the schedule for you. It also works in reverse, selling on a schedule to scale out of a position. ### What you'll learn * Setting up a Buy or Sell DCA plan * Choosing the amount per trade, the frequency and the budget * Backtesting the plan on real price history * Tracking your cost basis once the plan is running ### Buy or sell | Side | Use it to | | ---- | --------------------------------- | | Buy | Accumulate a token over time | | Sell | Scale out of a position gradually | ### Create a DCA strategy 1. Click **New Strategy** and choose **DCA**. 2. Name the strategy, then pick your DEX. 3. Choose **Buy** or **Sell**, then pick your pair. Confirm the token you're accumulating so there's no mix-up. 4. Set the **amount per trade**, for example 40 ADA. 5. Choose the **frequency**, from every minute up to once a month. 6. Set the **total budget**. The strategy stops once the budget is spent. 7. Assign a hot wallet. 8. Review the **Confirm DCA Strategy** window. It lists every setting, the estimated fees and the exact amount to fund. Then deploy. ### Performance preview | Metric | Meaning | | -------------- | --------------------------------------------- | | Total deployed | The ADA the plan will spend (the full budget) | | Trades | How many trades it takes to spend the budget | | Duration | How long the plan runs | | DEX fees | Estimated fees across all trades | ### Backtest before you commit Click **Run Backtest** and choose 1, 3, 6 or 12 months. You'll see how this exact plan would have performed over that period, including the tokens acquired and the average entry price. ### While it runs * **Budget and trades:** how much has been spent, and how many trades have filled * **Tokens acquired:** your running total * **Avg cost basis:** your average entry price so far * **DCA progress:** a bar showing how far through the budget you are * **Low balance banner:** tells you how much to top up if the wallet runs short ### Good to know * **Keep the Surge tab open.** Trades are signed in your browser. Turn on Keep display awake in Settings. * **Mind the fees.** Very small trades lose a bigger share to fees, so check the preview before choosing a high frequency. * **A backtest isn't a forecast.** It shows how the plan would have done in the past. It can't predict what happens next. ### Next [8. Arbitrage strategies](/tutorials/8.-arbitrage-strategies.md) --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.surgecardano.com/tutorials/7.-dca-strategy.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.