DCA on the way out

[nelson4lov]

DCA (dollar cost average) is a well known way to build up a position in Bitcoin (also applicable to other assets). Once a large enough position has been built and there is a desire to exit, what are some strategies on the way out?

Let's say we've DCA'ed in for 4 years and now want out. What are some good ways to reduce your position without DCA'ing out over 4 years (again)?

Imo, the best way to achieve desired results for this scenario is to try selling a part of the position at any "assumed" all time high as there's no sure-fire way of knowing where the market will top out. If I knew about DCA back then in 2017 when $20k was still considered a very high price for Bitcoin, I would have sold majority of my positions at that price and bought throws of $3K. It's a lesson I had to learn the hard way. Plus it doesn't necessarily need to be 4 years, just depends on how long each market cycle whether bull or bearish will last.

[Ausgewielt]

Sometimes I also use DCA for buying but not at high price periods. If you already did it for 4 years then I think you can sell it anytime, just in case you are in desperate for money. But if not then I suggest you to sell at bullish market only. Just wait until October or November, maybe you can sell it at good price. Bitcoin price movement is very volatile and you can see it clearly from the chart. If I were you I will sell  every 10% of it at bullish market, not just based on time but also based on chart, if the graphics is fall then wait until it go up again. I hope you can get maximum profit.

[OcTradism]

Sometimes I also use DCA for buying but not at high price periods. If you already did it for 4 years then I think you can sell it anytime, just in case you are in desperate for money. But if not then I suggest you to sell at bullish market only. Just wait until October or November, maybe you can sell it at good price. Bitcoin price movement is very volatile and you can see it clearly from the chart. If I were you I will sell  every 10% of it at bullish market, not just based on time but also based on chart, if the graphics is fall then wait until it go up again. I hope you can get maximum profit.

DCA means you accumulate one asset with time, gradually and according to your plan. When you practice DCA, price is not a big matter with you. Because you do this plan for long term investment.

I mean if you plan to DCA with $100 every month. You can do it every month and don't care of how a price in that month is. However, if price has deep correction, you can spend more than $100 as plan to accumulate more. So you can spend $200 in a bearish month if discount is big in your opinion.

https://dcabtc.com/

[botany]

Sometimes I also use DCA for buying but not at high price periods. If you already did it for 4 years then I think you can sell it anytime, just in case you are in desperate for money. But if not then I suggest you to sell at bullish market only. Just wait until October or November, maybe you can sell it at good price. Bitcoin price movement is very volatile and you can see it clearly from the chart. If I were you I will sell  every 10% of it at bullish market, not just based on time but also based on chart, if the graphics is fall then wait until it go up again. I hope you can get maximum profit.

Depends on his requirements. If I draw a parallel with the equity markets, you have both Systematic Investment Plans as well as Systematic Disinvestment Plans. You could withdraw (sell your bitcoins) your invested funds in small amounts, at regular intervals. This has the effect of averaging out the price while selling as well.

[Nunoluck]

I personally practicing DCA but since there are two types of market situation in bitcoin which is bearish and bullish then it seems that I practicing different DCA. If I push to buy using DCA while the market is bullish then I will buy BTC at high price, in my opinion it is not so smart. I prefer like to hold my fund until bearish market happen. So I will buy btc at cheap price it also make me get good position in trading. I think it will be good if you sell only in bullish market. As a trader I think you will be happy if you sell your  btc at high price. I trying to not to be too rigid, I realize that sometime bitcoin will surpass ATH and fall after that. So you can start to sell if btc price surpass ATH point, don't blindly follow theoreticall way, just make it simple.