ā“How DCA Works

What is DCA in the Solana Ecosystem?

Dollar Cost Averaging (DCA) is a trading strategy where an asset is bought or sold in small portions at regular intervals (e.g., every minute, hour, or day). On Solana, DCA orders are executed via a smart contract aggregator, which splits a large transaction into multiple smaller trades.

How It Works

Example of a DCA order: šŸŸ¢ "Buy PNUT every minute for 30 minutes, allocating $30,000 per minute."

Each new DCA order is publicly visible on-chain. The aggregator ensures that the order is executed repeatedly (e.g., every minute) until it is completed or manually canceled.

Why It Matters for Trading

  • Large DCA orders can temporarily push the price up or down.

  • For smaller and mid-cap tokens, these orders create noticeable volatility.

  • Tracking DCA activity in real-time can reveal short-term trading opportunities on CEXs and DEXs.

Use DCA ONLY to automate monitoring and stay ahead of the market.

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