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Most people exit a token with one market sell, this blog shows how to sell gradually, at higher prices, while collecting trading fees the whole way.

What is DCA Selling?

Dollar cost average selling means gradually exiting a position at progressively higher prices rather than selling all at once. On Valiant, you can set up a custom liquidity position that automatically sells your tokens as the price rises, while earning trading fees in the process.

Before diving in, make sure you understand impermanent loss. We have a separate blog covering this concept.

Getting Started

Head to valiant and click on Pools. Select the trading pair you want to use (for this example, FOGO/USDC) and click Custom.

Click the toggle to display prices in a more readable format so you can see the current price of FOGO clearly.

Understanding the Liquidity Chart

When you zoom out on the chart, you'll see individual bars representing liquidity buckets. Each bar shows how many tokens are available at that price level.

If FOGO is sitting in a bucket and the price moves through it, that FOGO gets replaced with USDC (sold to buyers). This is how your position gradually converts as the price rises.

Taller bars indicate more liquidity concentrated at that price level. More liquidity means more trading activity is needed for price to move through that range. This can help inform where you set your range.

Setting Up a DCA Sell Position

If you believe the price will go up and want to sell along the way:

1. Move the lower slider up so your range starts above the current price

2. Set the upper slider to your target exit price

3. Check the deposit ratio at the bottom

The key indicator: you want to see 100% FOGO and 0% USDC. This means you're only depositing FOGO, which will convert to USDC as the price rises through your range.

If you bring the lower slider too close to the current price and see a USDC percentage appear, you'll need to deposit both tokens. Adjust accordingly.

Example Setup

Let's say FOGO is currently at 5.7 cents and you think it could reach 10 cents. You could set your range from just above the current price up to around 10 cents. Then deposit your FOGO (e.g., 3,000 FOGO).

As the price moves up through your range:

• Your FOGO gradually sells to buyers

• You earn trading fees on each transaction

• By the time price reaches the top of your range, you'll have converted entirely to USDC

Managing Your Position

After creating your position, go to Positions to view it. Click the toggle to see a visual representation of your range.

If your position shows as "out of range" (highlighted in red), it means the current price is below your selling range. You won't earn any yield until the price moves into your range.

Once the price enters your range:

• You'll start earning trading fees

• Your FOGO will progressively convert to USDC

• The estimated yield percentage will update

Withdrawing and Claiming Fees

To withdraw, click on your position and use the slider to select how much to remove, or click Max to withdraw everything.

To collect earned fees, click Claim Yield. This harvests fees from all your positions. You can then reinvest those fees, create a new position, or swap them for other tokens.

When to Use This Strategy

This approach works well when:

• You want to take profits but don't want to sell everything at once

• You believe the price will rise and want to capture gains at multiple levels

• You want to earn trading fees while exiting your position

This strategy requires some understanding of price ranges and technical analysis. It's more complex than a simple swap, but it's one of the most effective ways to exit a position while maximizing fee earnings.

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Want a visual walkthrough? The video below covers this topic in detail.

Need Help with Fogo?

We've created a library of different tutorials on navigating the Fogo blockchain. Be sure to check out our blog posts for more.

In addition, we have a YouTube playlist showing this tutorial and many others.

Disclaimer: This content is for educational purposes only and is not financial advice. Always do your own research before making any investment decisions.