DCA strategy:
The average price you get can be lower and the minus is not as bad as if you use a large allocation in Buy 1.
Example?
BUY 1 ➩ 20% ($20) Allocation - Buy at a price of $100
BUY 2 ➩ 30% ($30) Allocation - Buy at a price of $75
BUY 3 ➩ 50% ($50) Allocation - Buy at a price of $50
Note:
Adjust to your respective capital. For the DCA area, it can be based on 3 things:
1️⃣
Percentage Decrease
For example, when it drops 25% you do Buy 1, when it drops 50% you do Buy 2, etc.
2️⃣
Price
DCA with price can also be, for example like this:
➩ BUY 1 at a price of $100
➩ BUY 2 at a price of $75
➩ BUY 3 at a price of $50
3️⃣
Entry Point
This requires TA (Technical Analysis), can be from signals or you analyze the entry point yourself. For example:
➩ BUY 1 at Entry 1
➩ BUY 2 at Entry 2
➩ Buy 3 at Entry 3
