Risk Management & Profitability
How A-DCA's Bull-mode controls manage defined exposures, what they do not protect against, and how historical figures should be interpreted.
Profit Fixing, Deposit Unlocking and the target capital reserve described here apply only to Bull mode. They manage specific USDT/USDC exposures but cannot guarantee a reserve level, profit or a maximum loss. Bear mode uses a different BTC-first workflow and remains exposed to adverse prices, execution and other trading risks.
Prefer watching over reading? Below you'll find a short video that covers the same information as this page. Feel free to read the text, watch the video — or both!
Watch: Risk Management & Profitability explained
This video explains the intended behavior and limitations of profit-fixing, market phase detection and the reserve mechanism. It is educational product documentation, not investment advice.
A-DCA uses three core algorithms running as scheduled tasks to manage risk and lock in profits automatically. Here's how each one works.
💰 Profit Fixing
The robot monitors calculated cumulative profit on capital used in trading. When configured conditions are met, it attempts to close eligible positions; fills, fees and unmatched positions affect the realized result.
How it works
Monitor: Robot tracks cumulativeBalanceUsedInTrading — the total capital actively deployed in open trades
Calculate: When cumulative profit ≥ PROFIT_FIX_PERCENT × capital used (e.g. 4%), the threshold is reached
Select: Robot selects the optimal set of long trades to close at breakeven or better
Execute: Market sell order is placed. Profit is locked. Records saved.
💡 Example
Illustration: capital in trades = 2,000 USDT and PROFIT_FIX_PERCENT = 4%, so the configured threshold is 80 USDT. This is a trigger example, not a promise that 80 USDT will be earned or realized.
📊 Market Phase Detection
The robot analyzes Bollinger Band signals to determine the current market phase and adjusts trading strategy accordingly.
How it works
Analyze: Robot reads the latest indicator data — low_price, high_price, bband_lower, bband_upper
Detect: If low_price < bband_lower → DRAWDOWN phase. If high_price > bband_upper → GROWTH phase. Otherwise → FLAT
Adapt: In DRAWDOWN phase, all open short positions are cancelled to avoid losses
Update: MARKET_PHASE parameter is updated globally — affects all subsequent trading decisions
Price touched lower Bollinger Band. All shorts cancelled. Focus on accumulation.
Price within normal range. Standard trading continues.
Price touched upper Bollinger Band. Favorable for taking profits.
🔓 Deposit Unlocking
When the calculated lock reaches a configured threshold in the applicable phase, the robot attempts defined closing actions. Market execution may not restore a precise reserve percentage.
How it works
Check phase: Algorithm only runs in FLAT market phase
Calculate lock: Total lock % = lockedQuotePercent + potential lock from open shorts
Compare: If total lock ≥ DEPOSIT_POTENTIAL_LOCK_LIMIT_PERCENT (e.g. 50%) — action is taken
Free capital: Cancel all short positions, then close profitable long positions by market
Limit: 50%
✅ Below limit — no action
⚠️ Above limit — freeing capital
→ Free capital: Cancel all short positions, then close profitable long positions by market
🛡️ When and How the Other 50% Is Used
Bull mode uses a configurable 50% lock threshold in specified conditions. Actual allocation can differ because of price moves, fills, fees and parameter changes.
Normal market conditions
The robot targets the configured lock threshold while placing and closing trades. The unallocated balance remains available in the connected account but is not protected from exchange or stablecoin risk.
Sharp market drop (DRAWDOWN phase)
When Bitcoin drops sharply and significantly, the robot can tap into a portion of the reserve 50%. It uses this capital to buy more BTC at a larger trade size — calculated based on how deep the price has fallen.
💡 Why this matters
The reserve target is intended to retain buying capacity during a decline. It cannot ensure continued trading, a better average price or recovery without a market rebound.
Historical observation: selected snapshots around January 29–February 5, 2026 cover a roughly 35% BTC decline. Review the dated Live Stats methodology; this unaudited case does not define performance in another decline.
⚠️ What happens WITHOUT this mechanism
If risk management is disabled, the robot can exhaust 100% of your USDT buying BTC during the drop — locking all capital at a high average price.
After the crash ends, the robot has nothing left to buy with. You watch BTC at low prices but have zero free USDT. The robot sits idle.
Losses may persist for an unknown period and recovery is not guaranteed. With little free quote balance, the strategy may have fewer available actions.
This comparison is illustrative; actual outcomes depend on positions, fills, fees and subsequent prices.
That's why we strongly recommend NOT asking support to disable risk management for your account.
📈 A target threshold is not a monthly return
The calculation below explains two configuration values. It does not establish how often the threshold is reached or what future return will be realized.
Illustrative parameter formula
With default parameters:
📌 DEPOSIT_POTENTIAL_LOCK_LIMIT_PERCENT = 50%
📌 PROFIT_FIX_PERCENT = 4%
✅ Arithmetic: 50% × 4% = 2% of total deposit per completed threshold cycle, not per month
📊 Historical context: the selected 65-day OKX sample from Nov 25, 2025 to Jan 28, 2026 observed about 4% per month on used capital. The sample is unaudited, market-specific and not a forecast.
Target exposure control
The configured threshold targets a reserve under defined Bull-mode conditions; it is not a guaranteed maximum allocation.
Scheduled automation
The controls run automatically, but users should monitor permissions, balances, orders and service availability.
No promised return
Monthly results can be positive, zero or negative. The 2% figure above is parameter arithmetic, not an expected yield.
🚀 Ready to Start?
Review the active mode, current parameters and full trading risk disclosure before enabling automation.
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