Topic: What's your actual dca strategy? (Read 341 times)

DCA means you put a fixed amount of money into buying after a certain period of time, and do it over and over. Could be days, weeks, or months. Market movements or prices won't affect your buying time or the amount that you put in. Anything except for this is not DCA.

But to solve the issue OP talked about green candles. You can sell and take profits (if your calculation leads to profits) from that investment and then analyze the market (if you are able to. Those who are doing DCA are most of the time HODLer or newbie investors who are not good at analyzing the market.) and if you see an up pattern, just HODL all till you get more profits if you feel like doing DCA you will make a loss instead of profits in that time.

But most of the people who are doing DCA never stop till the next bull run. They always target for the long run. That way no matter which price point you buy, you will still be making profits. But if you only have a target time frame like 6 or 12 months, then the market could really mess up your investment. You could make a loss instead of a profit.

So start when there's an opportunity if you feel like long term in not for you. Such as a bear market like we are facing now and so close to the next halving. This could be a great start for DCA and you can gain a good amount of profit.

If you buy bitcoins using DCA it will be fine, but you must set the times. If you follow the market positions and can plan well then it will be possible to make profit. You first need to know the DCA strategies and then invest, if you set it from bear market it will be beneficial to buy. or if you invest every week then definitely invest from bear market it will be worth for you. If you want to invest in Bitcoin then you must observe these DCA strategies well and plan your investment later, it will be better.

It's possible to ignore the green candles but who knows which green candle will be the beginning of the next uptrend? Be careful with your DCA strategy, I still prefer to keep buying every month no matter the market situation, either up or down your goal is long term and that's why you are even DCA in the first place, so why are you scared of green candles? Hello o we are still in a bear market isn't it?

We can't deny that some people will have less to invest than us, so everyone is free to DCA the way they feel like, to me it doesn't matter, a DCA is a DCA, the future value of what you are investing money in is what matters.

It's a complete different thing for altcoin investors, there are other things to be worried about, Bitcoin can't go to zero but altcoins can decide to fold up anytime, and when and how to DCA into alts are different, extremely unsafe.

DCA is just what it is, no matter how you decide to modify it in a suitable way for you. Like myself, I don't hesitate to buy Bitcoin, no matter the price. If I decide to invest $200 into Bitcoin every month or week, I always put in the money because it's my decision, and if I don't invest it, I might spend it on other things. Sometimes, if you have to wait for a dip to come first before you invest in Bitcoin, you might end up using that money before the dip could come, or the price of Bitcoin might go higher than what it is, and you will still not be able to purchase at the low price.

So, my actual DCA strategy is that I buy while I have the money and while I still can. I don't actually mind the candle; maybe the only time I would not have to buy Bitcoin is during a bull market when the price is so high.

DCA often advises buying regardless of market conditions. It intentionally capitalizes on market movements' volatility. However, you've switched to strategy during bear markets. Bitcoin's highs and lows are typical of many assets. Bear markets offer purchasing opportunities. However, identifying bear markets effectively is key. The crypto market is fickle, and protracted downtrends can turn into bull runs. Yes, DCA requires patience. In the classic race, the tortoise goes slow and steady. Keep in mind that your DCA variation may cost you opportunities. Each investor's journey is different, but keeping informed and flexible will improve your strategy.

I think as an investor, the most important thing to consider is your time horizon and your exit strategy. It's not a good thing to always put your money into something that you don't know how to get in profit, don't you? That's how you get in there right? To make money! NOT just to put money aside. In the hopes that it will be 10x in the future. Maybe it will, but the market is unpredictable. What will you do if the market is tanking its price lower? Would you sell? or would you buy more? What if there is enough profit for you to get out the market? Will you still hold or you will take profit from there?

I'm one of those people who don't advice people on how to invest . Jokes aside, your strategy is not what dca is about, you have got a different strategy there and if it is working for you, then go on with it and there's no need to change what you are doing. You are timing the market and waiting for a dip, and this is exactly what people who use dca are trying to avoid by using the strategy, with dca you don't time the market, you just buy at the regular intervals you have decided on without taking the price into consideration.

I don't think that's how DCA work, or you may use the term DCA incorrectly. Dollar Cost Averaging, means that investor should invest the same amount of money consistently, regardless of the market condition. This work with high volatility assets Bitcoin included, this strategy usually used by retail investor, they usually spare some amount of their monthly income to buy Bitcoin. If you are not invest in Bitcoin on the same amount every month, or buy different amount of bitcoin based on market condition, then that's not a DCA.

That is also a great strategy to minimize the risk, but I don't do it all the time because we are not the same. There are situations where you need to purchase it or else you can use your money on something else, meaning it is not a force but something you must rather do, as if not, then you'll be losing your money that was intended for Bitcoin.

Buying at dips is really helpful as it increases your profit, but it really depends on the investor if he will buy at the price because for others, it doesn't matter if they buy at $30k or $20k because they are just buying in small bits and they don't want to miss the opportunity to buy it, and also, you'll be buying at a low price when there are dips, so for me, it is a win-win situation.

We are just trying to increase the amount of bitcoin we have in our portfolio, I personally realize that I don't have enough money to make a one-time purchase during a large drop, instead I don't do that and don't do it at all, DCA is a solution for me to continue to be able to increase the bitcoin I have according to my ability as well.
I am also not unwilling to buy large amounts of bitcoin when bitcoin is experiencing a large decline, but I am aware of my abilities. Maybe if I force myself I can do it, like doing a loan, but for me it is a less wise choice to do.

The DCA system is always widely used by people who invest in crypto and so on, but of course everyone has their own way of making purchases using the DCA system. Personally, I always use the DCA system and it is similar to your strategy, namely by buying BTC when there is a decline. the price is far away, and indeed if you use the dca system and buy btc when btc is going down a lot of course the risk is not too big. I think the technique you use is very good.

It is not as if what you are doing is wrong, however DCA is a strategy that is supposed to be as simple as possible so anyone can perform it, investing in bitcoin once a week on the same day each time is a strategy that even a five year old would understand, and that is what makes it so powerful.

And while your particular way to perform DCA could be more profitable, as you are avoiding green candles, it takes away some of the simplicity of this strategy, which may prevent people to employ DCA as they should.

Its seems good ideas keep accumulating bitcoin every two week purchase around $200 for investing in Bitcoin, don't looks with DCA and keep investing in Bitcoin during under $30k and your investment more profitable in the future actually with your target for 12 months later. I have unique strategy with bitcoin accumulate during still have lower values can't stopping my decision for investing and keep purchase around $200 to $300 for investing in Bitcoin.
Looks Bitcoin in the stable price right now and its best moment for investing without think what have strategy adapting. Don't make your self in the pressure position and get effective with DCA strategy more efficiency investing or accumulating in bitcoin in weekly or monthly.

Make the DCA strategy very simple and anyone can do it without having to make large purchases every week or month, but this strategy must be done with a strong belief that in the long term Bitcoin will increase.
And the DCA strategy that I apply is to buy Bitcoin in small amounts every month according to my ability after I prioritize all my needs, and I will also increase the amount of purchases when Bitcoin is down because this is a discount that cannot be missed, and I will also make normal purchases once the price of bitcoin rises again.
In my opinion, the strategy of purchasing DCA regularly every week or month does not require large purchases. The most important thing is that you can always try to take advantage of price drops that occur to increase purchases.

Totally agree with you, which is why I think DCAing with crypto should have a different approach and factor in aspect of risk!
Am sure many will say that without following the investment plan it might not be called DCAing, but to try and maximize on potential profits..I think  its best to buy when price is low unlike going with systematic crypto investments that can expose you to over priced coins.

I admire your plan as it's a basic strategy of buy low and  sell high..well technically without the selling part   But seeing your rules have been tweaked here and there , do you buy several times in a month or only buy coins once .

I think there are three reasons why we do DCA, to keep buying in small bags because we don't have substantial amount to buy a big bag, we don't trust ourself that we can save enough to buy a lump some and also we don't know when the market will go bull so we want to maximize the opportunity and be filling our bags gradually. Having said that, lets say I'm doing a DCA of $100 or $200 every month and I'm aware that the bull season might start anytime from April next year. I would keep buying and be watching the price, the moment it gets close to Bitcoin ATH, lets say $60k I would stop buying, I will hold onto my Bitcoin and sell at my targeted price.

One I carefully thought out then was to buy BTC twice every month for 3years. This would be about 15% of my current income divided into two week intervals.
I tried to keep abreast and intune with news about BTC pump and dump and pay very close attention to any market signal or whale movements, inorder to decide on if to increase the 15% to 20%, and nothing more.
I used a good exchange to get my BTC and a cold wallet for efficient security.
I had to finally become as a pregnant lady, with patience waiting for delivery day. It never came because I liquidated my funds after a year when I had some personal issues to deal with.
Today am waiting for the motivation to be disciplined as before, but with a growing family, it is quite difficult so I just stick to mostly trading when I have the time.

I try to buy the same amount every month but in different days, depending on how the market is going: if in my opinion it's going up too quickly then I prefer to wait and see if there is a dump, of course taking the risk that maybe it'll keep going up. So sometimes I could buy at the beginning of the month, others in the middle, or even at the end. For the moment I had better results this way rather than just investing always at a certain date.

Most people just consider DCA for the accumulation which is good as well but for a traders weather he's on a long timeframe or on the short timeframe proper profit booking should also be based on the DCA, All out is never recommend should never be the priority of a trader as patience is the key.

Let's explain it in consideration of the complete cycle time frame, near to bottom As we all know bottom can never be efficiently predicted but with the market sentiments and scenarios close to the bottom X amount of regular investment. On the reversal trend and consolidation above the estimated bottom X/2 per week, and so on until the confirmation of full Swing of Bull Run with at least 2X of Bottom estimated. On the other hand for proper profit booking follow for the same in reversal order.

This strategy focuses, that you will buy in a bear market up to a certain level, which will allow you to get an average price below the level you determine. If the price reaches this level, or rises above, you don't buy, but when it goes below, you start buying again.

Determine the amount you will buy per week or per month, this does not matter much, but besides this, you will also have funds that you can use in case of significant drawdowns. This way, in the end you will have a certain purchase price that will be determined by you, and you will know at what price you will sell in a bull market, this will allow you to determine the profit that you will receive from your investment, everything is simple and practical.