I’d like your opinion on a strategy I’ve been considering. It’s based on the current Bitcoin price (around $69k) and a daily investment of $25, adjusted dynamically as the price changes. For example, if the price rises to $70k, I would reduce my daily investment to $24; if it drops to $68k, I would increase it to $26, and so on. My goal is to lower my average entry price over time while continuing a long-term DCA approach.
Posted by K4rtol4
5 Comments
Too much bother for such small allocation adjustment imo..
How do you decide what the changes are? It sounds to me like the changes would be based on your own discretion, which defeats the purpose of DCA. In your example, if the price rises above $70K and keeps on rising, your daily investments would progressively diminish, presumably until they hit zero.
I dont like to use the word DCA. I just convert all my shitty euros in btc ..paycheck in … convert all 🙂 rinse and repeat…
I don’t like that idea. DCA the amount you can afford to buy and let that ride. I would not buy less if price goes up. Just keep buying what you can afford. It just seems like you would be double punishing yourself when the price goes up. #1, if price goes up your money would buy less sats and #2, you would be lowering the amount of dollars you are investing.
I say just set your investment tolerance level at a set amount, then you can forget about it and it will just be clockwork. And if anything, buy a little more when price go down.
Sure I remember buying at ATH but 10 years from now, who will care.
Keep it simple stupid. If you’re investing long term (Which you should be) Statistically you’re best off lump summing in but you can DCA to make the short term movement less painful