When DCA works best, and when it gets stuck
DCA is not equally good in every market. When it shines, when it struggles and how to know which regime you are in.
Category
Schedule, sizing, take-profit and capital tradeoffs.
4 articles
DCA is not equally good in every market. When it shines, when it struggles and how to know which regime you are in.
The right DCA amount is not the largest your spreadsheet allows. It is the amount you will keep paying even when the market gets ugly.
A take-profit the market rarely visits is just a stuck position. Pick targets the market actually reaches.
Daily, weekly and faster DCA schedules behave differently. Start with capital, not with frequency.