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Btw the division is quite good but I think we can still divide it equally such as with $300 in each purchase or DCA made or maybe make it $200 in one time it is also still possible.
I think that you are referring to my example of a $1,200 budget and placing them in 4 different price locations.
I think that I largely addressed this as a way that some kinds of buy order structures and plans are deficient and they may well cause panic because of their deficiencies, so merely dividing them into equal parts would not necessarily improve the deficiencies that I was trying to point out, but I agree with you that there are some benefits in terms of trying to stay somewhat consistent with amounts, once we might figure out other details, such as what are our increments, how much we have in our budget and how far down we want our buys to go in order to attempt to account for what we believe to be worse case scenarios (and perhaps even having enough of a budget to go beyond what we consider to be worse case scenarios).
Yep, it refers to the example you gave so that the discussion does not widen much, but in the end it also adjusts to the capital we have and I am aware of that, it's just that when there is already an example so that the discussion refers more to the DCA in question, I just give my views on the example you gave earlier.
The context may go back to consistency because if indeed we cannot be consistent with large amounts then at least it can be minimised in terms of the amount invested so that the DCA we do runs well.
Sure, there may be a certain value to consistency in terms of both DCA and buying on dips, but it may not necessarily be something that we need to think of in terms of having to be strict with ourselves when we might have some parameters that we might choose to use that will also work.
I was even talking about the same idea in one of my posts from yesterday.
Anything that takes Bitcoin below $20k again will make a lot of people, including me, buy aggressively. That will be a major giveaway because any positive news will lead to immediate profits even before the much anticipated bull market.
I don't see that happening though but then, we always keep open mind as either way is good for me... the beauty of DCA.
I am not sure what to make about these theories about backing up the truck - since a lot of bitcoin believers will already be buying BTC all the way down from $30k, so there can be questions about how much money many of the true bitcoin believers are going to have left if the BTC price were to drop below $20k again.
made some gains applying DCA instead of my former pattern of buying at market price whenever I have fund available for buying.
1) you have some set dollar amount that you buy BTC at some set period whether daily, weekly or some other period
or
2) you buy based on when your money comes available, so the date and the amount would vary, but perhaps you would have a formula that allows you to figure out how much extra that you have available (accounting for monthly expenses to determine how much is left available, of course).
Surely the more that you vary either 1 or 2, then you are perhaps overly bringing your own discretion into the mix, and it still may well fit DCA depending on the extent to which you may well have some kind of a system in which you are trying to stay consistent but giving yourself some flexibility within some somewhat objective criteria.So I think that part of my point is that there can be very legitimate reasons to vary either our DCA or our buying on dips based on a variety of circumstances that might include either how much cash that we have coming in, and the variance of the cash that would be available for buying, and as I already mentioned, if we have some kind of theory about how far the BTC price might drop, then we might attempt to strategize our amounts and our increments based on our thoughts on various areas in which there might be price support (meaning that the BTC price might not end up going below that level, but if it does end up going below that level then we might try to anticipate where the next support level might be).
Like I already mentioned, even though this thread does have a subject matter that involves trying to identify possible dip price areas, I tend to not be so keen about trying to figure out those areas, but I do try to place my BTC buy orders in increments that I believe are sufficiently reasonable for me, which right now they are $500 increments, and I also try to place them much further down than I believe that the BTC price will go, which currently I have them at $13k, and I largely just left those buy orders in the same spot that I had when the price had dipped down to $15,479, even though a couple of times, I did change the amounts contained in each of the preset buy orders.. but they do currently stay in $500 increments all the way down to $13k.. and surely I don't even want $25k support to be broken.. but if it is, I will likely be buying, and I anticipate that there is likely support at $22k and at $20k, but my BTC buy orders are largely the same amount all the way down through those various price points and all the way down to $13k (even though as I am arguing those buy orders do not necessarily need to be the same amounts.. but I kind of feel better to have them being the same amounts, even though I largely hope none of them get filled).
By the way, I think that it may well take years for someone to really feel that they have bought enough bitcoin (in the sense of feeling overallocated/overinvested, but still comfortable at the same time, and then being able to place BTC buy orders down way further than he expects to get filled) because largely a lot of those extra (and low level) buy orders are just cash being left on the table in the event that the BTC price goes up, so it can take a long time to feel comfortable enough that you have enough BTC in order to leave those BTC buy orders in place, even though they are likely not going to get filled (but they still continue to serve as a kind of insurance and a kind of cash cushion in case the BTC price does end up falling to those kinds of levels that are way beyond expectations).
Yeah of course, you can employ your own variation of DCA, but if you do not really understand what you are doing, it is likely best to attempt to employ a more strict variation of DCA first, and make sure that you understand the more strict variation of DCA before you start to get too fancy and then end up doing something that you call DCA but it really is not even close to what DCA should be.. but instead a kind of buying on dips or even a kind of gambling, but you call it DCA because you start out with DCA and then devolve into something else.
What factors makes one DCA strategy strict one and fancy one. Are these two mentioned ways of DCA are strict or Fancy one. Because from what I have learnt in the short period is in DCA we do not put all of our money at once just like we do in lump sum instead we try to time the market or at least to increase the profit on our holding to get our hands on more Satoshi.
You do seem to be mixing up your definitions a bit, so I am not sure if I am going to be able to pound the proper way of thinking about the matter into your head.
A more strict DCA approach is going to largely be price agnostic, and so the buying of BTC will be based on the budgetary considerations of the BTC buyer, so if he looks at his budget and he sees that he has $1k per month coming in, and he has various expenses such as housing, utilities, food, transportation, entertainment, and maybe all of those expenses add up to about $700 to $800 every month, so he only has $200 to $300 per month that he can invest, but maybe he should be making sure that he builds and/or maintains an emergency fund, so maybe he feels comfortable buying $100 per month in BTC, and he will have $100 to $200 going into his slush fund that maybe he can draw from that fund later to buy some BTC, for example if his slush fund might become greater than $3,500, then he might start to conclude that he has around 5 months worth of expenses in it, and maybe he can afford to not have that much money in his slush/emergency fund and he might feel that he is in a better position to allocate the whole $200-$300 per month into BTC rather than just $100...but even within that category of how much BTC he is able to buy regularly (maybe even dividing that into weekly, he still might have some that he buys no matter what $15 to $40 per week (depending on how much is in his total budget, and then he might decide to hold the remaining value for buying on dips.. so buying on dips is not the same as DCA, even though there may be considerations of each of the categories and deciding how much BTC to buy each week that fits into the DCA, and then the other portion that might depend on the dips would be buying on dips.
Another thing is that maybe this person has his budget pretty well figured out and his emergency fund is good, but his cash variance can still be great enough that he has some uncertainties about whether he might have $100 or $300 for the month to be able to buy BTC, but he also might end up in a kind of situation in which he ends up getting some kind of extra cashflow once or twice a year (maybe a job bonus or just some kind of lucky payment that he might receive from time to time).. so maybe all of a sudden he has $1,200 extra that comes into his cashflow that he had not expected, so he considers that amount to be totally available for buying bitcoin, so in that kind of a case, he can consider the money in three categories and decide how much to put into each category, which is 1) lump sum 2) DCA, 3) buying on dips. He can decide to put $400 into each of the three categories or he could decide to vary it or to put all or some of it into only one of the categories.
And I read some articles too about DCA types, but I did not find any, but I do find an advice that we should do DCA only in those assets or in only those investments which are for longer period of time.
Well one of the ONLY ways that DCA really works is if you have some level of confidence that the asset in which you are investing is going to have periods in which it goes up in value so that you would be able to cash out at a higher price down the road at some point, even if the short-term price might have a decent amount of volatility and variance.
Of course with something like bitcoin, we have presumptions about the longer term price going up, even though for sure it is not guaranteed to go up, but part of the justification for DCAing into BTC is that there are beliefs that the price will ultimately go up, but since there is also a non-zero chance that it might not, each of us should attempt to be both financially prepared for that possibility which may well be something that we can adjust to based on how large of a position that we choose to take into bitcoin...or how aggressive that we want to be and whether we might choose to invest into other things (I am not referring to shitcoins here but rather things like property, equities, bonds, commodities and cash).
You seem to be describing that correctly. So if you have a regular DCA set up, then you might have some dollars that you are holding in reserves, so when the BTC price dips, then you decide how much of that money in reserves that you are going to want to use to................
Understood your points here. In short, I understand that every situation has different DCA strategies. Like when we have more fiat, less fiat, price is on it ATH in some specific time period etc. And thanks for the assistance too.
Strict DCA is not concerned about price. When you are concerned about the BTC price you are engaging in buying on dip strategies... not DCA.. now if you want to create a kind of hybrid, you might budget yourself to have $50 per week to DCA, and within each week you might decide that you will try to manual employ your $50 at the lowest price, so maybe you have a target price that you are looking for, but if at the end of the week, your price is not met, you just buy at whatever price is present, and you then go into the next week with another $50, but you end up spending the earlier week either on a dip or at your cut off deadline time in which if you had not already bought on a dip, you will buy at whatever is the then BTC price.
I guess that you are making a certain kind of point with the chart regarding ongoing wrong bitcoin price predictions, but wouldn't it also be a good idea to provide a link to the chart so that we can see from where you get it and maybe some other context for the various dots within the chart?
https://zurichcryptojournal.com/how-many-time-has-bitcoin-be-called-dead/ I do not know if dear Wind_FURY has downloaded the image from the following website or not, but I found it using google lens and google lens helped me a lot in giving online tests. Even in the assignments of making apps in java they gave us diagrams and all I do is use google lens and then upload that image to find out that from which website they have picked the picture and once I able to find the source then it became super easy for me to copy the code. I know that's not a good way, but assignments take huge time and while we have our hands on full of assistance then i do not hesitate to use them Hehe.
Oh great. .thanks for the link. I see that there is no real article.. just the chart... but still at least it shows a possible place that the chart might have come from.
