What is the Difference Between a DCA and a Martingale?
📌 What’s the Difference Between DCA and Martingale?
Both DCA and Martingale are averaging strategies that increase positions when the price moves against the original trade.
📌 The difference lies in how the position size is increased:
- DCA (Dollar-Cost Averaging): intervals with fixed or gradually increasing sizes. It focuses on risk control and stable recovery.
- Martingale: Doubles the position size with each new entry. It aims for faster breakeven but carries higher risk if the trend continues against the position.