What is Averaging, Martingale, and Logarithmic Distribution

Averaging (DCA — Dollar Cost Averaging)

Veles bots belong to the DCA-bot category. DCA (Dollar Cost Averaging) is a strategy where the total buy or sell volume of an asset is split into multiple parts. Orders are placed step-by-step (as a grid), allowing you to lower the average entry price on buys or raise it on sells.

Core idea:

The price moves against your position → the bot places an additional order (buys more or shorts more).
The average entry price moves closer to the current price.
When the market reverses, the exit point is reached faster.

Important: a safe grid rarely executes fully. If all grid orders trigger frequently — it means your grid is too short, and the bot will often go into invest mode (a long floating drawdown).

From the active trade card, you can manually add extra orders beyond the grid — this helps exit from drawdowns, but requires additional margin.

Example: Calculating the Average Price

The coin price averaging formula:

P = (Q1 * P1 + Q2 * P2 + Q3 * P3) / (Q1 + Q2 + Q3)

P is the price of the coin after averaging
Q1, Q2, Q3 — the amount of coins in the orders
P1, P2, P3 — coin prices in the averaging orders

Pair: SOL/USDT, current price: 202.91 USDT. Grid coverage: 10%, 3 orders.

Order 1: 202.91 → 16.4 SOL
Order 2: 192.76 → 17.2 SOL
Order 3: 182.61 → 18.2 SOL

Average position price after all orders execute = 192.4 USDT

What is the Martingale Strategy

A Martingale means each next order in the grid is larger than the previous one by a fixed percentage. This accelerates the shift of the average entry price toward the market price, allowing a quicker recovery.

Example (Martingale 20%):

Order 1: 202.91 → 13.5 SOL
Order 2: 192.76 → 17.1 SOL
Order 3: 182.61 → 21.6 SOL

Average entry price drops to 191.18 USDT, better than equal-volume orders.

Formula:

New Order Volume = Previous Order Volume × (1 + Martingale %)

The higher the Martingale %, the faster the bot “pulls” the average price closer — but the greater the margin risk.

Logarithmic Order Distribution

By default, grid orders are placed linearly — evenly spaced in price. That’s not always efficient:

In low volatility, only the first few orders may trigger.
Much of the deposit remains unused.

Logarithmic Coefficient

You can control grid density with this parameter:

Greater than 1 → more orders near the current price.
- Pros: more capital is actively working during small moves.
- Cons: higher risk during sharp drops.
Less than 1 → fewer orders near the current price, more below.
- Pros: lower liquidation risk during deep corrections.
- Cons: lower profit, slower capital utilization.

Ready-Made Grid Schemes

To simplify setup for new users, here are three base templates you can use as a starting point.

🔴 Aggressive Scheme

Logarithm: 1.5 – 2.0
Martingale %: 30 – 50 %
Pros: Fast recovery and profit even after small reversals.
Cons: High risk; requires significant margin support.

🟡 Balanced Scheme

Logarithm: ≈ 1.0 (linear spacing)
Martingale %: 15 – 25 %
Pros: Good balance between recovery speed and safety.
Cons: May require manual control during strong drawdowns.

🟢 Conservative Scheme

Logarithm: 0.5 – 0.8
Martingale %: 0 – 10 %
Pros: Minimal liquidation risk; ideal for calm markets.
Cons: Profit-target distance may be far from the current price.

Summary

Averaging (DCA) reduces entry risk by splitting the position.
Martingale accelerates recovery but increases margin exposure.
Logarithmic distribution allows flexible control over grid density.
Ready-made templates help beginners trade safely and efficiently.

Choose the configuration that matches your trading style and risk tolerance, then fine-tune it for each specific asset.