DCA Strategy
Spreading purchases over time to smooth the entry price
Beginner-friendly explanation
DCA (Dollar-Cost Averaging) means investing a fixed amount regularly, regardless of price. It helps avoid bad timing.
Example: You invest €100 in Bitcoin every month, no matter the price.
Intermediate-level insight
DCA reduces the impact of volatility. It's used for accumulation or dip buying. It can be automated with bots or platforms.
Example: An investor sets a bot to buy $50 of ETH every 7 days, monitored using a moving average.
Advanced perspective
Advanced DCA includes cycle analysis, portfolio tracking, and sometimes dynamic triggers (e.g., drawdown or indicators). It's part of an optimized passive strategy.
Example: A long-term trader uses conditional DCA: buys only if drawdown > 20%, adjusting based on the asset’s ATR.
Trading Strategies
DCA, gradual investment, automation, accumulation, drawdown, volatility, bot, passive management