When you see something risky, you DCA on a negative PNL (DCAONP).

Let me give you an example:

Coin is sitting at $200K MC and your capital is $5K.

First rule: I’m not putting more than 10% of my capital into the trade → $500.

With DCAONP, I don’t deploy the full $500 immediately.

I start with 20% of the $500 = $100 at $200K MC.

Then I wait.

If the market cap drops, I add another 20% of the $500. I keep doing this as it moves against me until the full $500 allocation is used.

Once the $500 is deployed, I add nothing else.

At that point, you either hold and wait for a recovery or accept the loss and exit.

The whole point is to have a plan before the trade starts, not keep throwing money at a losing position emotionally.