DCA on a real account: does it work?

tjtonmoy

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Quote from: Lakai01 on October 22, 2023, 11:32:53 AM

I see it differently. Especially for newcomers to the market DCA is a top strategy to build up a stock of coins. Both if the person plans to invest money in the long term (savings plans, ...) and if you want to invest in a coin with a fixed amount (eg 1.000€). Emotions play absolutely no role here and you can not make bad purchases (if you stick to the plan, of course). This is a massive relief, especially for newcomers to the very volatile crypto market. I have seen enough "newbies" who got out after the smallest losses and missed the chance for big profits.

Emotion does not play a role while buying, but while hodling. I agree that a newcomer can accumulate bitcoin despite the volatile nature of the market, and that could be achieved by doing DCA. Emotion does not play a role and there are no bad purchases if we stick to plan, that's right. But DCA does not give you profit instantly. You need to keep Hodling till it reaches its peak so that you can get a good amount of profit. Imagine a newbie without any emotion control who is facing a market fluctuation. Without any knowledge of emotion control, he will panic sell for sure and make a loss.

It is OK to start without any knowledge and anything while doing DCA, but if you don't learn it later on, then that should be a huge problem. The internet is full of FOMO, FUD and all those influencers influencing people to take bad decisions. In a place like that, sticking to the plan without emotion control is really hard. You will fall victim for sure.

Inwestour

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Quote from: Sim_card on October 22, 2023, 11:34:42 AM

As a beginner, DCA will help you accumulate bitcoin regularly, which gives you a better chance of increasing you bitcoin investment portfolio with ease and faster. It is been confirmed by expert investors that as long as you are hodling for a long term, DCA method of accumulating bitcoin will serve you better because you have made a budget of the actual amount that you will use to buy bitcoin regularly, either weekly or monthly. DCA strategy is the way to passive income when you invest in bitcoin, this is because you will always buy bitcoin irrespective of the price movement of bitcoin and your portfolio will keep on increasing bit by bit. If can you use DCA method to accumulate for one circle and sell at the bull run.

The DCA strategy itself will not make you rich if you fail to use it properly. If you buy Bitcoin on ATH, then you will significantly worsen the conditions and, as a result, the average purchase price will allow you to make a significantly smaller profit than if you started buying at the bottom of the bear market. And for this you need to have a lot of necessary knowledge, so the strategy itself for a beginner will not be the solution to all his problems or some kind of magic recipe that will make him wealthy.

Sim_card

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As a beginner, DCA will help you accumulate bitcoin regularly, which gives you a better chance of increasing you bitcoin investment portfolio with ease and faster. It is been confirmed by expert investors that as long as you are hodling for a long term, DCA method of accumulating bitcoin will serve you better because you have made a budget of the actual amount that you will use to buy bitcoin regularly, either weekly or monthly. DCA strategy is the way to passive income when you invest in bitcoin, this is because you will always buy bitcoin irrespective of the price movement of bitcoin and your portfolio will keep on increasing bit by bit. If can you use DCA method to accumulate for one circle and sell at the bull run.

Lakai01

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Quote from: tjtonmoy on October 22, 2023, 11:17:20 AM

[...]
But for a newbie, it is going to be difficult if they don't know how market works and how they should control their emotions. So I should suggest learning emotion control before doing DCA or before coming into the crypto platform.

I see it differently. Especially for newcomers to the market DCA is a top strategy to build up a stock of coins. Both if the person plans to invest money in the long term (savings plans, ...) and if you want to invest in a coin with a fixed amount (eg 1.000€). Emotions play absolutely no role here and you can not make bad purchases (if you stick to the plan, of course). This is a massive relief, especially for newcomers to the very volatile crypto market. I have seen enough "newbies" who got out after the smallest losses and missed the chance for big profits.

tjtonmoy

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Quote from: beerlover on October 21, 2023, 02:25:23 PM

DCA is a safe method, it doesn't require you to know any trading, any charts or anything and you still get to make a safe profit, that is a lot better and should be considered a lot easier as well. That's what I have been doing for years and it looks good for now.

DCA is safe only when it's done right. The main thing that we need to focus while doing DCA is to have patience and not get influenced by our own emotions. In technical terms, it is easy because as you mentioned we don't need any complex knowledge about charts, market, and all the other strategies required for trading. All we need to do is know how to buy Bitcoin and safely store it. That's all there is to it.

But it only becomes hard when we are holding it throughout all the market movements that may lead many people to panic still and sell at a loss. DCA does not give you profit instantly like trading. It takes a longer period of time and in order to hold throughout that time frame we need to have strong emotion control. Otherwise, as mentioned people will sell at a loss just because they weren't ready to hodl. From what I can tell, you have been in this for a while and you know how things works. But for a newbie, it is going to be difficult if they don't know how market works and how they should control their emotions. So I should suggest learning emotion control before doing DCA or before coming into the crypto platform.

traderethereum

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Quote from: barisbilgili on October 21, 2023, 10:59:07 PM

Quote from: Bitcoin_people on October 21, 2023, 09:56:33 PM

If you are an investor then definitely use DCA method it will save you from maximum. The most important things you should know when you start investing are avoiding risk and being aware of market volatility. If you can analyze the various strategies of the market when you invest then you can definitely profit. That is why the most important thing for your success in trading is technical analysis which will help you to always maintain positive thoughts. That's why using DCA when you invest will always bring you to a profitable level, and will play a major role in the success of your business.

Using several strategies in investing will certainly be able to reduce the losses we will incur so that we can maintain the assets we have in various situations and also we can still overcome them when we make mistakes that we accidentally make. Choosing the DCA method in investing is very profitable if we have passive income then we will be able to take the time to buy it in stages, but if we don't have passive income I think it is difficult to use this method.

That is why many people recommend using the DCA method. They don't have to buy at one time but divide it over several times to get various low prices.
We have to try to do this so that we can also have lots of Bitcoin in investing. If we can continue to use DCA regularly, we will not worry about market price movements because our investment goal is long term.

We also won't think much about the news circulating or changing price movements. We can use it to our advantage in buying Bitcoin at low prices.

cheezcarls

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For me, DCA is for those who are thinking long term and not caring about the volatility of Bitcoin. It is what I have been doing in the past year where I am doing dollar-cost averaging on Bitcoin and Ethereum with my extra money.

Although technically it is less riskier than day trading, but it is still subject to market volatility and has no guarantees or promises, but accumulating while waiting for the bull market would be great.

As of now, I am at a profit where I bought them when it was still at $18k to $23k range, but there are a couple of deposits I have made where I am still at a loss at around $30k to $31k range.

We might be excited for the halving, but always be prepared for the unexpected happenings.

barisbilgili

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Quote from: Bitcoin_people on October 21, 2023, 09:56:33 PM

If you are an investor then definitely use DCA method it will save you from maximum. The most important things you should know when you start investing are avoiding risk and being aware of market volatility. If you can analyze the various strategies of the market when you invest then you can definitely profit. That is why the most important thing for your success in trading is technical analysis which will help you to always maintain positive thoughts. That's why using DCA when you invest will always bring you to a profitable level, and will play a major role in the success of your business.

Using several strategies in investing will certainly be able to reduce the losses we will incur so that we can maintain the assets we have in various situations and also we can still overcome them when we make mistakes that we accidentally make. Choosing the DCA method in investing is very profitable if we have passive income then we will be able to take the time to buy it in stages, but if we don't have passive income I think it is difficult to use this method.

Bitcoin_people

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If you are an investor then definitely use DCA method it will save you from maximum. The most important things you should know when you start investing are avoiding risk and being aware of market volatility. If you can analyze the various strategies of the market when you invest then you can definitely profit. That is why the most important thing for your success in trading is technical analysis which will help you to always maintain positive thoughts. That's why using DCA when you invest will always bring you to a profitable level, and will play a major role in the success of your business.

beerlover

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Quote from: tjtonmoy on October 20, 2023, 09:59:00 AM

DCA is a complete strategy itself. You put certain amount of money after certain period of time. It should be continuous until you decide to sell for a profit. If you make any changes in it or if you temper with the continuity, then it does not stay as DCA.
I got your idea and strategy. You came up with something new by combining different strategies that already exist. But when you change something in a strategy it becomes something else. It could be new or it could already exist.

As you have mentioned that you are not a regular trader and you want a passive way to make income then I would suggest sticking to the DCA method. It should not be a short-term profit scheme rather you should focus on long term. DCA does not guarantee steady gain. The price may fall time to time but if you hold for long enough you will see gain. In DCA, All it takes is patience and strong will to hold till you see profits. But if you want short-term profit you will have to go through the complicated learning of trading process. If you're not yet ready for that then it should stick with DCA in my opinion.

That's true, the biggest profit maker for any passive way to make money would be DCA, that way you would be able to make a profit and you would not have to worry about anything else. I understand that some people think that it would be hard to make profit because they see that the bottom and the top are very far away and you could trade them and make a bigger profit but the reality is that most people who try to make a trade like that ends up making the wrong trade and lose money instead of make more.

DCA is a safe method, it doesn't require you to know any trading, any charts or anything and you still get to make a safe profit, that is a lot better and should be considered a lot easier as well. That's what I have been doing for years and it looks good for now.

tjtonmoy

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DCA is a complete strategy itself. You put certain amount of money after certain period of time. It should be continuous until you decide to sell for a profit. If you make any changes in it or if you temper with the continuity, then it does not stay as DCA.
I got your idea and strategy. You came up with something new by combining different strategies that already exist. But when you change something in a strategy it becomes something else. It could be new or it could already exist.

As you have mentioned that you are not a regular trader and you want a passive way to make income then I would suggest sticking to the DCA method. It should not be a short-term profit scheme rather you should focus on long term. DCA does not guarantee steady gain. The price may fall time to time but if you hold for long enough you will see gain. In DCA, All it takes is patience and strong will to hold till you see profits. But if you want short-term profit you will have to go through the complicated learning of trading process. If you're not yet ready for that then it should stick with DCA in my opinion.

Natsuu

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Quote from: Lakai01 on October 16, 2023, 04:30:47 AM

Quote from: Webetcoins on October 16, 2023, 02:04:15 AM

[...]
Maybe there are still people who do a DCA even in a bull period because they have a higher expectation, or/and maybe they only sell less for a while. DCA is about having a patience. For those starters, mistakes are still prone but they shouldn't gave up easily.

DCA has nothing to do with the general market sentiment (bullish vs. bearish), so you always execute the DCA buys. Otherwise, it is no longer DCA but falls for me into the standard trading category. If you intervene ("I'm not buying now, because we are currently in the bull market"), you decide on the trades yourself and do not take advantage of the fact that you are very often wrong with your own assessment and your own gut feeling ... which is exactly what DCA is for: You always buy at a fixed time for a fixed amount.

My DCA savings plans run parallel to my trading and HODL-ing plans and perform very well.

DCA only works depends on the time horizon you are willing to risk your money and not take it out. It's very easy to put your saving into some coin investment but most cannot handle their account being on negative for months. So instead they take losses because of fear instead of sticking to their DCA plan. Since it's DCA, timing isn't a big deal after all just make sure that you can hold it as long as you can.

DCA is not quick profits. If you've had, then you're very lucky to be on the right market condition but until then you can do averaging to participate in the market.

Lakai01

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Quote from: Webetcoins on October 16, 2023, 02:04:15 AM

[...]
Maybe there are still people who do a DCA even in a bull period because they have a higher expectation, or/and maybe they only sell less for a while. DCA is about having a patience. For those starters, mistakes are still prone but they shouldn't gave up easily.

DCA has nothing to do with the general market sentiment (bullish vs. bearish), so you always execute the DCA buys. Otherwise, it is no longer DCA but falls for me into the standard trading category. If you intervene ("I'm not buying now, because we are currently in the bull market"), you decide on the trades yourself and do not take advantage of the fact that you are very often wrong with your own assessment and your own gut feeling ... which is exactly what DCA is for: You always buy at a fixed time for a fixed amount.

My DCA savings plans run parallel to my trading and HODL-ing plans and perform very well.

Webetcoins

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Quote from: justdimin on September 30, 2023, 04:48:11 AM

DCA is a thing you can use at any time of crypto, doesn't matter if it's bull or bear and you could keep using it the more you want. It is obvious that during the bear period you will be collecting, and during the bull period you are going to be profiting, that should how you approach this.

Maybe it's not all that easy to handle it that quickly but if we are smart about it then we could probably make some money with it as well. I hope that it gets to a point where we could end up with something that is a lot better and the results will be a lot more profitable if we are careful about it as well.

You mean at any market conditions, but not anytime because I think some follows a schedule if when will they do a DCA. The more we buy or do a DCA, the better but the only problem sometimes is the cash. Maybe there are still people who do a DCA even in a bull period because they have a higher expectation, or/and maybe they only sell less for a while. DCA is about having a patience. For those starters, mistakes are still prone but they shouldn't gave up easily.

Quote from: justdimin on September 30, 2023, 04:48:11 AM

I understand that it may not be all that simple but we could make it work one way or another if we are careful about it.

Yeah being careful. It can be careful of handling our money outside so that we still have money left to do a DCA, and then careful that we can continue HODLing our coins until we achieve the best selling price that we can think of.

MarvieJ

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Quote from: un_rank on September 26, 2023, 03:51:18 PM

Quote from: cryptobeestrategy on September 26, 2023, 03:12:18 PM

I'm a big fan of DCA, so I created my own strategy using Pine Script in TradingView. It combines dollar cost averaging, grid trading, and my own creativity.

How exactly do you plan to combine grid trading as well as dollar cost averaging and what forms your own creativity?
DCA is not a trading strategy although it looks like it in some way, it is more of an investment strategy and a long term one specifically for those who do not want to go through the burden of reading charts and trying to pick the best time to buy and to sell.

Quote from: cryptobeestrategy on September 26, 2023, 03:12:18 PM

I'm not a trader, so I was looking for a more passive approach to investing. I'm hoping that this strategy will be a good fit for me.

Simple DCA is a passive approach already, you do not need to complicate it and include grid trading.

- Jay -

Yea I was actually thinking same thing, DCA is mostly for those looking at longterm . Which most times as traders you could still incur losses yeah. But when you wanna DCA you’ll look at a more 15% or above roi

cryptobeestrategy

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Quote from: lombok on September 30, 2023, 10:21:22 AM

In my opinion, DCA is an effective strategy in any market situation. I am also a DCA user on the spot market.

Regarding ROI of 15-23% per year, I think it is reasonable and good, but not optimal. Why do I think it's not optimal? In my opinion, there are several additional strategies that make DCA more optimal and able to increase the profit percentage to 50-100 percent to 200 percent. DCA combined with additional skills or expertise in market analysis; technical & fundamental analysis, understanding doji - patterns and patience can optimize profits. Maybe this 15-23% ROI is if you do DCA irregularly or just enter at the current price where you have the money and with an irregular RR.

Certainly, you can achieve higher profits when combined with technical and fundamental analysis, but the returns may vary from year to year, with some years being excellent and others more modest. What I have done is to consistently achieve a monthly gain ranging from 0.8% to 3%, irrespective of whether the market is bearish or bullish, according to backtesting. That's why I'm currently testing it on a real account. I've been doing so since September 15th, and tomorrow I will share the link to the trades and the earnings for the month of September.

Thank you for your comment.

lombok

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Quote from: cryptobeestrategy on September 26, 2023, 03:12:18 PM

In my backtesting results, my strategy has a ROI of 15-23% per year

In my opinion, DCA is an effective strategy in any market situation. I am also a DCA user on the spot market.

Regarding ROI of 15-23% per year, I think it is reasonable and good, but not optimal. Why do I think it's not optimal? In my opinion, there are several additional strategies that make DCA more optimal and able to increase the profit percentage to 50-100 percent to 200 percent. DCA combined with additional skills or expertise in market analysis; technical & fundamental analysis, understanding doji - patterns and patience can optimize profits. Maybe this 15-23% ROI is if you do DCA irregularly or just enter at the current price where you have the money and with an irregular RR.

justdimin

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Quote from: gunhell16 on September 27, 2023, 08:14:25 AM

I was curious as to how you connected trading in the cryptocurrency market with DCA. How does grid trading work for this? As far as I'm aware, DCA is not a tool for trading in this particular bitcoin market.

Are you able to buy bitcoin every day for $100 under current circumstances, despite the fact that DCA is an excellent approach to amass Bitcoin and other cryptocurrencies that anyone believes will provide a big profit during the upcoming bull season or bitcoin halving next year? To be honest, it's not simple for regular folks working in the Bitcoin sector to achieve this.

DCA is a thing you can use at any time of crypto, doesn't matter if it's bull or bear and you could keep using it the more you want. It is obvious that during the bear period you will be collecting, and during the bull period you are going to be profiting, that should how you approach this.

I understand that it may not be all that simple but we could make it work one way or another if we are careful about it. Maybe it's not all that easy to handle it that quickly but if we are smart about it then we could probably make some money with it as well. I hope that it gets to a point where we could end up with something that is a lot better and the results will be a lot more profitable if we are careful about it as well.

tvplus006

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Quote from: cryptobeestrategy on September 28, 2023, 04:12:24 PM

Quote from: tvplus006 on September 28, 2023, 02:25:11 PM

Quote from: cryptobeestrategy on September 27, 2023, 02:21:02 PM

Quote from: tvplus006 on September 27, 2023, 02:01:52 PM

Have you defined for yourself any time frame during which you will buy coins? After all, in the end everything will depend on the amount of money in your wallet. And if you run out of money, and the value of Bitcoin continues to decline, then you will get an unacceptable average value of the coin.

The way my investment strategy works is on a short-term basis on the 3-hour time frame. There will be purchases that last for just one day or even less before becoming profitable, as well as some that extend beyond one month. Consequently, there is no need for an infinite amount of capital. There is a video on mi tiktok explaining how it works. There is a video on my tiktok that explains how it works.

In this case, your current strategy has nothing to do with DCA and it is unclear why you used this abbreviation in the name of the thread. You should understand that a characteristic feature of the DCA strategy is the systematic nature and duration during which it is used.

The idea is that my investment method works by averaging purchase prices, but on a short-term basis while making them profitable. You are correct; I should have used a different term in the thread. However, if you read the post, it mentions that it combines elements of DCA and Grid trading, albeit only certain characteristics from these methods.

DCA cannot be used for short-term trading. You get a profit only due to the fact that the market allows you to close previously opened longs. But if the price will be regularly reduced, not allowing you to sell previously purchased coins, you will not be able to stick to your strategy for a short-term deal.

cryptobeestrategy

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Quote from: panganib999 on September 27, 2023, 05:33:30 PM

My eyes popped out of their sockets when I saw that ROI. Jesus fucking christ that's huge, although I must ask, what maths lead you to these numbers? and how were you able to integrate DCA with grid trading, to me those two trading systems are a little on the opposite sides of the spectrum cause you got one where you invest regardless of the price, and another where you trade on specific price sets. Just trying to wrap my head around this whole thing lol.

The foundation of DCA is averaging the purchase price, and that's the characteristic I employ in my strategy, "averaging prices." The GRID aspect is established based on market volatility, which is somewhat complex to explain. In essence, it's neither DCA nor GRID; it's a system that incorporates a few features from both. By applying certain mathematical calculations, it achieves that ROI. This is in the context of spot trading. While leverage could be used to multiply returns, that would transition into trading rather than investing. If you're curious, here's the chart for 2022 applying my method https://es.tradingview.com/chart/BTCUSDT/qtnVf3E5/ .You can view all the trades that were executed throughout the year.

Topic: DCA on a real account: does it work? (Read 461 times)