What’s up legends!
Welcome to the January 2023 DCA report!
What is dollar cost averaging (DCA)?
According to Investopedia:
Dollar-cost averaging is a strategy that can make it easier to deal with uncertain markets by making purchases automatic. It also supports an investor’s effort to invest regularly.
Dollar-cost averaging involves investing the same amount of money in a target security at regular intervals over a certain period of time, regardless of price. By using dollar-cost averaging, investors may lower their average cost per share and reduce the impact of volatility on the their portfolios.
In effect, this strategy eliminates the effort required to attempt to time the market to buy at the best prices.
In this report, we call this the Standard DCA and if you do not possess the skill of being able to read charts, this is the one to follow. However, if you understand price action, then you can follow my Supercharged DCA strategy which has been designed to maximise your earning potential over time with very little effort. If you want to know more about how this strategy works, be sure to check out the Supercharge DCA video in the educational material under the Invest by Design Courses.
For this monthly update, I have setup two test DCA accounts. One will only invest the standard strategy at $100 per week and the other will follow the supercharge strategy which averages out to the same weekly investment, but just spread out better throughout the cycle. Both are setup to automatically buy at the exact same day and time each week. Over time we can track together how each performs.
I will also be using coinstats to track this portfolio. Coinstats is a website that you can link to your exchanges via API to help you track your portfolio. it’s especially great if you have crypto across multiple exchanges. You can join CoinStats here
Here are the results of each portfolio as of 1/02/2023:
Standard DCA
Supercharged DCA
Currently, the supercharged strategy is in the bear phase, adding double capital weekly for as long as price is under the weekly 160 EMA and the RSI is below 80. If you’re following this method, be sure to have your notifications turned on for the #dca-alerts channel in discord so you can be notified when it’s time to move to the next phase of this strategy.
See you next month!
Annii 🙂