TL;DR: FundedNext Futures allows Dollar-Cost Averaging (DCA) when it is used as a structured and disciplined strategy with clear risk management and a predefined plan. Traders may scale into positions at planned price levels or zones, but blindly averaging down, continuously adding to losing positions, or trading without an exit strategy is discouraged, as it reflects poor risk management and increases liquidation risk.
FundedNext Futures welcomes structured and thoughtful Dollar-Cost Averaging (DCA) strategies that integrate risk management and discipline, reflecting our commitment to responsible trading practices and the long-term success of our traders.
DCA involves scaling into positions at predetermined price levels or predefined zones, supported by a well-planned rationale for each entry, with no restrictions on timing, size, or placement, provided your approach reflects disciplined risk control.
While strategic DCA is encouraged, continuously adding to losing positions without a predefined plan or exit strategy is not encouraged, as it may increase margin use and liquidation risk. Similarly, averaging down blindly in hopes of a reversal is considered poor risk management and should be avoided.