TeslaLong
A better DCA strategy that you need to start using.
We all know about Dollar Cost Averaging positions over time.
However allow me to introduce you to a weighted DCA strategy that gets you a tighter average and retains additional capital over time ready to be allocated at "better prices".
First take your monthly $ allocation to your desired Ticker
*For this example we use $400 added monthly and TSLA as the Ticker
We break the monthly add into 1/4ths
So if we have $400 That = 4 lots of $100 dollars.
Set an Auto buy to $100 (as well as auto div reinvest if there is one)
*This feels like we're leaving too much on the table and not invested, but this is what gives this strategy the sauce.
*We use the Daily chart over a year timeframe for consistency.
If RSI is >= 60 we leave the auto buy of $100 (1/4) as is and save the remaining 3/4s to allocate at another date.
If RSI is >= 50 -60 we buy another 1/4 ($100) (totaling $200 or 2/4s of monthly allocation)
If RSI is <= 30 we allocate the other 3/4s ( $300 ) for a full 4/4s monthly allocation
_We will also @ RSI <= 30 allocate 1/4 of all saved monthly allocations
As seen in the Chart this occurs in Feb of 2024 where we buy $400 ($100 auto buy + $300 manual) and from $1300 reserves we've accumulated we use $325 to purchase additional shares.
This leaves us in great shape, we have a much tighter avg while also maintaining funds ready to specifically purchase more shares at a better price without the fomo.
The monthly breakdown of DCA'd shares looks like this
Shares DCA'd
Jul .35
Aug .789
Sep .794
Oct .773
Nov 1.94
Dec .84
Jan .84
Feb 3.90
mar 1.06
Apr 1.225
may 1.109
Jun 1.13
14.75 shares over 1 year
Total Invest
$3025
AVG/Share
$205 (9% better Avg than regular DCA)
W/ $1775 available for RSI < 30 situations
Any questions/ opinions welcomed.
Good Luck out there.
However allow me to introduce you to a weighted DCA strategy that gets you a tighter average and retains additional capital over time ready to be allocated at "better prices".
First take your monthly $ allocation to your desired Ticker
*For this example we use $400 added monthly and TSLA as the Ticker
We break the monthly add into 1/4ths
So if we have $400 That = 4 lots of $100 dollars.
Set an Auto buy to $100 (as well as auto div reinvest if there is one)
*This feels like we're leaving too much on the table and not invested, but this is what gives this strategy the sauce.
*We use the Daily chart over a year timeframe for consistency.
If RSI is >= 60 we leave the auto buy of $100 (1/4) as is and save the remaining 3/4s to allocate at another date.
If RSI is >= 50 -60 we buy another 1/4 ($100) (totaling $200 or 2/4s of monthly allocation)
If RSI is <= 30 we allocate the other 3/4s ( $300 ) for a full 4/4s monthly allocation
_We will also @ RSI <= 30 allocate 1/4 of all saved monthly allocations
As seen in the Chart this occurs in Feb of 2024 where we buy $400 ($100 auto buy + $300 manual) and from $1300 reserves we've accumulated we use $325 to purchase additional shares.
This leaves us in great shape, we have a much tighter avg while also maintaining funds ready to specifically purchase more shares at a better price without the fomo.
The monthly breakdown of DCA'd shares looks like this
Shares DCA'd
Jul .35
Aug .789
Sep .794
Oct .773
Nov 1.94
Dec .84
Jan .84
Feb 3.90
mar 1.06
Apr 1.225
may 1.109
Jun 1.13
14.75 shares over 1 year
Total Invest
$3025
AVG/Share
$205 (9% better Avg than regular DCA)
W/ $1775 available for RSI < 30 situations
Any questions/ opinions welcomed.
Good Luck out there.
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