Many people look at Dollar Cost Averaging (DCA) as a strategy for trading. This practice involves taking an entry position in one direction and, if the market goes against you, continuing to buy at lower prices until you manage to recover the loss. However, is DCA allowed in Apex Trader Funding? the answer is NO.
You might ask yourself, why? The reason is that, in the long run, DCA will never make you money. The market is unpredictable, and one day it will teach you a lesson when a pullback never comes, causing you to lose all your money.
Apex Trader Funding explains in an interesting VIDEO (I advice you to watch it) how they had to fight against people who were abusing this strategy with multiple scams. These individuals would oversize on multiple accounts (Bought with stolen credit cards), hoping to get a significant win without considering the prop firm itself. Unfortunately, this impacts the company and, more importantly, all the other traders who are trading seriously and respecting the contract they agreed on with Apex Trader Funding.
DCA has never been allowed, and now it is being more strictly enforced due to the scams that were being created around it. Complaining that you are not getting your payout because of DCA is like accepting a legal contract not to drive recklessly and then complaining to the police about not being able to go 300 km/h in a 50 km/h zone. Does that sound right? Why did you agree to trade with Apex then? You can go and trade your own money with DCA, but I assure you, you will fail.
ON WHAT LIMITS is DCA allowed in Apex TRADER FUNDING?
Apex Trader Funding, to be precise and avoid misunderstandings, has decided to put a limit on adding to a losing position: only one additional entry is allowed (REVIEW THEIR CONSISTENCY RULES HERE). So yes, you can add once to your losing position, but no more than that. If you decide to break this rule, please do not complain about not getting paid when you are not following the contract you accepted when signing the agreement.
Many people might question and say, “But I can do it with other prop firms.” However, this is not true. Other prop firms block you in different ways, such as with scaling plans where you cannot use more than 1-2 contracts for the first 2-3k gain and have a max daily loss of 1k or 1.5k. In that case, your account will not manage to handle the possible pullback and will get you automatically liquidated.
In conclusion, DCA is not allowed. A maximum of one additional entry to a losing position is permitted. Avoid this strategy altogether! Your trading will improve, and you will thank Apex for this in the future when you might be trading your own money.