How the Prime Spot DCA Trading Bot Works

This page explains, in simple words, how the trading bot decides when to buy and sell, how it manages risks, and what techniques it uses to stay reliable.

1. Buying Process

Placing Buy Orders

• The bot places Limit Buy orders at the market price when a signal appears
• The amount bought depends on the capital you assigned to that trading pair

Tracking and Managing Buy Orders

• After placing a buy order, the bot waits for a short time to see if it goes through
• If the order is completed, your balance and average buy price are updated automatically
• If the order doesn’t fill, the bot will cancel it and may try again later if the trading signal is still valid

Safety Orders (DCA)

• The bot supports a DCA (Dollar-Cost Averaging) strategy through Safety Orders (SOs) — a smart way to lower your average buy price when the market drops.
• You can set the maximum number of Safety Orders in the configuration under “Max Safety Orders.”
• Each Safety Order is triggered when the price drops by a specific percentage from the average buy price after the previous SO. These drop levels are defined in “Safety Steps (%)” — for example, [1.0, 2.0] means: SO1 triggers when price drops 1%, SO2 triggers when it drops another 2% below the average price after SO1
• The size (volume) of each SO can be adjusted using “Volume Scale”, allowing each new order to be larger than the previous one if you wish
• Before placing any SO, the bot checks your available USDT balance to make sure there’s enough capital
• The bot won’t place a Safety Order if a Take Profit (TP) has already been triggered
• This approach helps smooth out your entry price and improve recovery chances during market dips

2. Selling Process

Placing Sell Orders

• The bot can sell using Market Sell (immediate - Panic Sell) or Limit Sell (waits for price)
• When the bot places a Limit Sell order, it will wait for a while to see if the order gets filled. If the market price stays near the target level, the bot will keep the order active a bit longer to give it a better chance to complete. But if the price moves away and the order still isn’t filled, the bot will automatically cancel the sell order to avoid losses or being stuck.
  This flexible behavior helps the bot adapt to fast market changes and protect your capital more effectively.

Types of Sell Strategies

• Static Take Profit (TP): Up to 3 profit targets. At each, the bot sells part of your holdings
• Dynamic Take Profit: Uses market volatility (ATR indicator) to set profit levels. If you only use Dynamic TP, set Dynamic Sell (%) = 100% so the bot sells the full position and starts a new cycle automatically. If Dynamic Sell < 100% and Trailing TP is disabled, the bot will only sell partially and keep the rest — meaning no new Base Orders will be opened until you sell manually.
• Trailing Take Profit: Follows the highest price reached. If the price pulls back by your set percentage (while still in profit), the bot sells everything
• Stop Loss (SL): Protects you from big drops. Can be fixed % or based on volatility
• Panic Sell: A manual emergency option that instantly closes all active positions for the pairs currently managed by the bot. When pressed, it sends a Market Sell order for each running pair to exit immediately and stop further trading. It does not sell your entire wallet — only the assets related to active bot trades.
• Static TP and Trailing TP Combined The bot prioritizes Static & Dynamic Take Profit first, followed by Trailing TP if enabled. Stop Loss or Panic Sell only act when protection or manual override is needed.
• Dynamic TP and Trailing TP Combination: When both Dynamic TP and Trailing TP are enabled, the bot continuously monitors both conditions in parallel and sells according to whichever is triggered first. If the Dynamic TP target is reached first, the bot sells the configured portion (e.g., 50%) of the position. The remaining amount will then be managed by Trailing TP, which continues tracking the price and sells the rest when the trailing condition is met. If the Trailing TP condition is triggered first (before Dynamic TP), the bot will sell the entire position immediately, since the price has already reached and reversed from a high point. This dual setup lets the bot secure early profit through Dynamic TP while still maximizing gains with Trailing TP if the market continues upward.

3. When the Bot Buys

Base Order (First Buy)

• The bot checks the indicators you enabled (RSI, MA, MACD, ADX, Bollinger Bands, Volume)
• All conditions must be true at the same time before buying
• If it loses 3 times in a row, it pauses that pair for 24 hours

Safety Orders

• Placed only if the price keeps dropping after the first buy
• When RSI is enabled, the bot will only place a Safety Order if RSI is higher than the value set in “RSI Min”. This helps the bot avoid buying more when the market is heavily oversold, since the price could keep falling. It’s a simple way to reduce risk and make smarter entries during downtrends.
• It also ensures no profit target has already triggered

4. When the Bot Sells

• Sells when profit targets are hit (fixed or ATR-based)
• Sells everything if trailing stop is triggered
• Cuts losses if stop-loss is reached

5. Reliability Techniques

• Ensures order sizes/prices follow Binance’s rules
• Checks market data before placing trades
• Remembers your state (holdings, average price, TP/SL flags) even after restarts
• Uses multiple price sources (live, candle, REST API) to stay accurate
• Handles errors with retries and auto-reconnection
• Logs all actions and errors into files

✅ In short: The bot buys when your conditions align, averages down if prices drop, and sells with multiple strategies to secure profits or cut losses. It is built to be safe, flexible, and reliable.