DCA on a real account: does it work?

[cryptobeestrategy]

I was curious as to how you connected trading in the cryptocurrency market with DCA. How does grid trading work for this? As far as I'm aware, DCA is not a tool for trading in this particular bitcoin market.

Are you able to buy bitcoin every day for $100 under current circumstances, despite the fact that DCA is an excellent approach to amass Bitcoin and other cryptocurrencies that anyone believes will provide a big profit during the upcoming bull season or bitcoin halving next year? To be honest, it's not simple for regular folks working in the Bitcoin sector to achieve this.

DCA is a form of investment; what I'm saying is that I've created my own strategy, incorporating aspects such as averaging the entry price and making regular investments akin to the DCA methodology. Additionally, I leverage somewhat complex mathematical calculations, which are challenging to explain, to predict buying points based on volatility, similar to Grid trading. It's a distinct tool that is neither DCA nor Grid Trading because I'm only utilizing certain characteristics from these methods to simplify comprehension.

I've been implementing this strategy in the real market since September 15th, and I'm documenting my progress on TikTok. Thank you for your response.

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[cryptobeestrategy]

Have you defined for yourself any time frame during which you will buy coins? After all, in the end everything will depend on the amount of money in your wallet. And if you run out of money, and the value of Bitcoin continues to decline, then you will get an unacceptable average value of the coin.

The way my investment strategy works is on a short-term basis on the 3-hour time frame. There will be purchases that last for just one day or even less before becoming profitable, as well as some that extend beyond one month. Consequently, there is no need for an infinite amount of capital. There is a video on mi tiktok explaining how it works. There is a video on my tiktok that explains how it works.

[blockman]

You can't be sure with that ROI you're mentioning with those numbers. Because from what I am experiencing through DCA, you just can't measure how much the ROI, the losses, and the profit will be. It is literally unknown. And you can't just do DCA on fake accounts or demo accounts because we're talking about real money here, real crypto and without such, you can't buy those on any exchange.

I'm not a trader, so I was looking for a more passive approach to investing. I'm hoping that this strategy will be a good fit for me.

This is the better approach if you're not really a trader. Yes, it's passive and for sure if you have understood how it works, it's certainly a good fit for you.

My approach isn't strictly DCA since DCA involves making regular purchases at set intervals. Instead, my strategy involves making multiple purchases based on market volatility, coupled with a fixed take-profit target. In my case, after conducting a successful backtest, I have implemented this strategy in a live trading account. For instance, you can observe the performance in 2022, which was a bearish year.https://es.tradingview.com/chart/BTCUSDT/qtnVf3E5/

Nice.
I do understand what you're saying that it's still DCA whether you set regular buys out or you just want to buy all of a sudden but that's been a practice that you've been following.
If you're able to do successful back test with it and was able to measure how much profit and percentage you'll get from the ROI you've seen in projection, that's nice. Anyway if you're going to reply to others, just merge it in post to avoid deletion or problems from the mods.

[panganib999]

Hey everyone!

I'm a big fan of DCA, so I created my own strategy using Pine Script in TradingView. It combines dollar cost averaging, grid trading, and my own creativity.

In my backtesting results, my strategy has a ROI of 15-23% per year, not including compound interest. I'm currently testing it in a real account, and I'm sharing my trades on TikTok. My strategy currently works only with Bitcoin and in the hourly time frame. I'm still learning and improving the strategy, and I'm excited to see how it performs in the real market.

I'm not a trader, so I was looking for a more passive approach to investing. I'm hoping that this strategy will be a good fit for me. I'd love it if you'd check out my TikTok account (@cryptobeestrategies ) and give me some feedback. I'm still learning, and I appreciate any help I can get.

Thanks for reading!

My eyes popped out of their sockets when I saw that ROI. Jesus fucking christ that's huge, although I must ask, what maths lead you to these numbers? and how were you able to integrate DCA with grid trading, to me those two trading systems are a little on the opposite sides of the spectrum cause you got one where you invest regardless of the price, and another where you trade on specific price sets. Just trying to wrap my head around this whole thing lol.

[Best-mary]

Hey everyone!

I'm a big fan of DCA, so I created my own strategy using Pine Script in TradingView. It combines dollar cost averaging, grid trading, and my creativity.

In my backtesting results, my strategy has a ROI of 15-23% per year, not including compound interest. I'm currently testing it in a real account, and I'm sharing my trades on TikTok. My strategy currently works only with Bitcoin and in the hourly time frame. I'm still learning and improving the strategy, and I'm excited to see how it performs in the real market.

I'm not a trader, so I was looking for a more passive approach to investing. I'm hoping that this strategy will be a good fit for me. I'd love it if you'd check out my TikTok account (@cryptobeestrategies ) and give me some feedback. I'm still learning, and I appreciate any help I can get.

Thanks for reading!

If you were using exchange, I would have told you to study this Dual Investment methodology. It's been helpful for quite some time. Since you have an idea of creating your strategy, I think that will help.

[tvplus006]

Have you defined for yourself any time frame during which you will buy coins? After all, in the end everything will depend on the amount of money in your wallet. And if you run out of money, and the value of Bitcoin continues to decline, then you will get an unacceptable average value of the coin.

The way my investment strategy works is on a short-term basis on the 3-hour time frame. There will be purchases that last for just one day or even less before becoming profitable, as well as some that extend beyond one month. Consequently, there is no need for an infinite amount of capital. There is a video on mi tiktok explaining how it works. There is a video on my tiktok that explains how it works.

In this case, your current strategy has nothing to do with DCA and it is unclear why you used this abbreviation in the name of the thread. You should understand that a characteristic feature of the DCA strategy is the systematic nature and duration during which it is used.

[Hamphser]

Hey everyone!

I'm a big fan of DCA, so I created my own strategy using Pine Script in TradingView. It combines dollar cost averaging, grid trading, and my own creativity.

In my backtesting results, my strategy has a ROI of 15-23% per year, not including compound interest. I'm currently testing it in a real account, and I'm sharing my trades on TikTok. My strategy currently works only with Bitcoin and in the hourly time frame. I'm still learning and improving the strategy, and I'm excited to see how it performs in the real market.

I'm not a trader, so I was looking for a more passive approach to investing. I'm hoping that this strategy will be a good fit for me. I'd love it if you'd check out my TikTok account (@cryptobeestrategies ) and give me some feedback. I'm still learning, and I appreciate any help I can get.

Thanks for reading!

I dont know but i do have a feeling that this is some sort of indirect kind of advertising your tiktok channel or it is just me? 

If we do speak about indicators or whatever tools that you've been using on your trading analysis then there's no such thing about being bad or right because we are all free on whatever analysis that we do come up with and if you do make out some combinations or add up other than DCA then its your choice because it would really be just that so normal that we will really be making combinations of different trading style and method or indicators or strategies that you would really be applying on a certain moment or scenario. Does it work? If it works and brings out profit for you then thats it.

Just make it sure that you are really that wary about the volatility. Even lets say that you are making use of Hourly time frame then you should be that
wary about those sudden spikes and crashes that we could have on this market. Always better to make yourself that prepared.

[cryptobeestrategy]

Have you defined for yourself any time frame during which you will buy coins? After all, in the end everything will depend on the amount of money in your wallet. And if you run out of money, and the value of Bitcoin continues to decline, then you will get an unacceptable average value of the coin.

The way my investment strategy works is on a short-term basis on the 3-hour time frame. There will be purchases that last for just one day or even less before becoming profitable, as well as some that extend beyond one month. Consequently, there is no need for an infinite amount of capital. There is a video on mi tiktok explaining how it works. There is a video on my tiktok that explains how it works.

In this case, your current strategy has nothing to do with DCA and it is unclear why you used this abbreviation in the name of the thread. You should understand that a characteristic feature of the DCA strategy is the systematic nature and duration during which it is used.

The idea is that my investment method works by averaging purchase prices, but on a short-term basis while making them profitable. You are correct; I should have used a different term in the thread. However, if you read the post, it mentions that it combines elements of DCA and Grid trading, albeit only certain characteristics from these methods.

[cryptobeestrategy]

I dont know but i do have a feeling that this is some sort of indirect kind of advertising your tiktok channel or it is just me? 

If we do speak about indicators or whatever tools that you've been using on your trading analysis then there's no such thing about being bad or right because we are all free on whatever analysis that we do come up with and if you do make out some combinations or add up other than DCA then its your choice because it would really be just that so normal that we will really be making combinations of different trading style and method or indicators or strategies that you would really be applying on a certain moment or scenario. Does it work? If it works and brings out profit for you then thats it.

Just make it sure that you are really that wary about the volatility. Even lets say that you are making use of Hourly time frame then you should be that
wary about those sudden spikes and crashes that we could have on this market. Always better to make yourself that prepared.

Hello, in response to your question, I am not promoting my TikTok. It's a way to share my progress on a real account while applying my investment strategy.
The reason I'm doing this is because there are probably many people who don't feel comfortable with trading, and I will try to demonstrate that it is possible to achieve good short-term returns by investing in spot.

[Hypnosis00]

Honestly, it is a different experience when you are doing it in actuality. DCA really works and based on your backtesting gives you a profit which is right but can't expect the market to behave the same as in your test that is why I would there big changes when doing it in real life. And for some reasons;
 - emotions dealing
 - market sentiment
 - risk management

Well, if you can play it well and stick to your plan, you can even make an ROI of more than 15-23% per year.

[Johnyz]

I began testing the strategy on September 15th of this year. As you rightly mentioned, in addition to TikTok, I will also prepare an Excel spreadsheet to track and demonstrate the progress. Moreover, I believe it would be beneficial to create a website to showcase how the strategy works. Thank you for the suggestion; I will definitely consider it.

Have you defined for yourself any time frame during which you will buy coins? After all, in the end everything will depend on the amount of money in your wallet. And if you run out of money, and the value of Bitcoin continues to decline, then you will get an unacceptable average value of the coin.

If there’s no budget yet, better not to chase the drop and just wait for your money to come.
The purpose of DCA is to play long, and not to chase every drop because it can be risky too. You just need to timing everything and have a good time plan on when to buy like you can set it every time you receive your payroll and this is way better. Cheaper Bitcoin can be more attractive but of course, there’s no need to rush and grab it, just stay focus on your own timeline.

[cryptobeestrategy]

My eyes popped out of their sockets when I saw that ROI. Jesus fucking christ that's huge, although I must ask, what maths lead you to these numbers? and how were you able to integrate DCA with grid trading, to me those two trading systems are a little on the opposite sides of the spectrum cause you got one where you invest regardless of the price, and another where you trade on specific price sets. Just trying to wrap my head around this whole thing lol.

The foundation of DCA is averaging the purchase price, and that's the characteristic I employ in my strategy, "averaging prices." The GRID aspect is established based on market volatility, which is somewhat complex to explain. In essence, it's neither DCA nor GRID; it's a system that incorporates a few features from both. By applying certain mathematical calculations, it achieves that ROI. This is in the context of spot trading. While leverage could be used to multiply returns, that would transition into trading rather than investing. If you're curious, here's the chart for 2022 applying my method https://es.tradingview.com/chart/BTCUSDT/qtnVf3E5/ .You can view all the trades that were executed throughout the year.

[tvplus006]

Have you defined for yourself any time frame during which you will buy coins? After all, in the end everything will depend on the amount of money in your wallet. And if you run out of money, and the value of Bitcoin continues to decline, then you will get an unacceptable average value of the coin.

The way my investment strategy works is on a short-term basis on the 3-hour time frame. There will be purchases that last for just one day or even less before becoming profitable, as well as some that extend beyond one month. Consequently, there is no need for an infinite amount of capital. There is a video on mi tiktok explaining how it works. There is a video on my tiktok that explains how it works.

In this case, your current strategy has nothing to do with DCA and it is unclear why you used this abbreviation in the name of the thread. You should understand that a characteristic feature of the DCA strategy is the systematic nature and duration during which it is used.

The idea is that my investment method works by averaging purchase prices, but on a short-term basis while making them profitable. You are correct; I should have used a different term in the thread. However, if you read the post, it mentions that it combines elements of DCA and Grid trading, albeit only certain characteristics from these methods.

DCA cannot be used for short-term trading. You get a profit only due to the fact that the market allows you to close previously opened longs. But if the price will be regularly reduced, not allowing you to sell previously purchased coins, you will not be able to stick to your strategy for a short-term deal.

[justdimin]

I was curious as to how you connected trading in the cryptocurrency market with DCA. How does grid trading work for this? As far as I'm aware, DCA is not a tool for trading in this particular bitcoin market.

Are you able to buy bitcoin every day for $100 under current circumstances, despite the fact that DCA is an excellent approach to amass Bitcoin and other cryptocurrencies that anyone believes will provide a big profit during the upcoming bull season or bitcoin halving next year? To be honest, it's not simple for regular folks working in the Bitcoin sector to achieve this.

DCA is a thing you can use at any time of crypto, doesn't matter if it's bull or bear and you could keep using it the more you want. It is obvious that during the bear period you will be collecting, and during the bull period you are going to be profiting, that should how you approach this.

I understand that it may not be all that simple but we could make it work one way or another if we are careful about it. Maybe it's not all that easy to handle it that quickly but if we are smart about it then we could probably make some money with it as well. I hope that it gets to a point where we could end up with something that is a lot better and the results will be a lot more profitable if we are careful about it as well.

[lombok]

In my backtesting results, my strategy has a ROI of 15-23% per year

In my opinion, DCA is an effective strategy in any market situation. I am also a DCA user on the spot market.

Regarding ROI of 15-23% per year, I think it is reasonable and good, but not optimal. Why do I think it's not optimal? In my opinion, there are several additional strategies that make DCA more optimal and able to increase the profit percentage to 50-100 percent to 200 percent. DCA combined with additional skills or expertise in market analysis; technical & fundamental analysis, understanding doji - patterns and patience can optimize profits. Maybe this 15-23% ROI is if you do DCA irregularly or just enter at the current price where you have the money and with an irregular RR.

[cryptobeestrategy]

In my opinion, DCA is an effective strategy in any market situation. I am also a DCA user on the spot market.

Regarding ROI of 15-23% per year, I think it is reasonable and good, but not optimal. Why do I think it's not optimal? In my opinion, there are several additional strategies that make DCA more optimal and able to increase the profit percentage to 50-100 percent to 200 percent. DCA combined with additional skills or expertise in market analysis; technical & fundamental analysis, understanding doji - patterns and patience can optimize profits. Maybe this 15-23% ROI is if you do DCA irregularly or just enter at the current price where you have the money and with an irregular RR.

Certainly, you can achieve higher profits when combined with technical and fundamental analysis, but the returns may vary from year to year, with some years being excellent and others more modest. What I have done is to consistently achieve a monthly gain ranging from 0.8% to 3%, irrespective of whether the market is bearish or bullish, according to backtesting. That's why I'm currently testing it on a real account. I've been doing so since September 15th, and tomorrow I will share the link to the trades and the earnings for the month of September.

Thank you for your comment.

[MarvieJ]

I'm a big fan of DCA, so I created my own strategy using Pine Script in TradingView. It combines dollar cost averaging, grid trading, and my own creativity.

How exactly do you plan to combine grid trading as well as dollar cost averaging and what forms your own creativity?
DCA is not a trading strategy although it looks like it in some way, it is more of an investment strategy and a long term one specifically for those who do not want to go through the burden of reading charts and trying to pick the best time to buy and to sell.

I'm not a trader, so I was looking for a more passive approach to investing. I'm hoping that this strategy will be a good fit for me.

Simple DCA is a passive approach already, you do not need to complicate it and include grid trading.

- Jay -

Yea I was actually thinking same thing, DCA is mostly for those looking at longterm . Which most times as traders you could still incur losses yeah. But when you wanna DCA you’ll look at a more 15% or above roi

[Webetcoins]

DCA is a thing you can use at any time of crypto, doesn't matter if it's bull or bear and you could keep using it the more you want. It is obvious that during the bear period you will be collecting, and during the bull period you are going to be profiting, that should how you approach this.

 Maybe it's not all that easy to handle it that quickly but if we are smart about it then we could probably make some money with it as well. I hope that it gets to a point where we could end up with something that is a lot better and the results will be a lot more profitable if we are careful about it as well.

You mean at any market conditions, but not anytime because I think some follows a schedule if when will they do a DCA. The more we buy or do a DCA, the better but the only problem sometimes is the cash. Maybe there are still people who do a DCA even in a bull period because they have a higher expectation, or/and maybe they only sell less for a while. DCA is about having a patience. For those starters, mistakes are still prone but they shouldn't gave up easily.

I understand that it may not be all that simple but we could make it work one way or another if we are careful about it.

Yeah being careful. It can be careful of handling our money outside so that we still have money left to do a DCA, and then careful that we can continue HODLing our coins until we achieve the best selling price that we can think of.

[Lakai01]

[...]
Maybe there are still people who do a DCA even in a bull period because they have a higher expectation, or/and maybe they only sell less for a while. DCA is about having a patience. For those starters, mistakes are still prone but they shouldn't gave up easily.

DCA has nothing to do with the general market sentiment (bullish vs. bearish), so you always execute the DCA buys. Otherwise, it is no longer DCA but falls for me into the standard trading category. If you intervene ("I'm not buying now, because we are currently in the bull market"), you decide on the trades yourself and do not take advantage of the fact that you are very often wrong with your own assessment and your own gut feeling ... which is exactly what DCA is for: You always buy at a fixed time for a fixed amount.

My DCA savings plans run parallel to my trading and HODL-ing plans and perform very well.

[Natsuu]

[...]
Maybe there are still people who do a DCA even in a bull period because they have a higher expectation, or/and maybe they only sell less for a while. DCA is about having a patience. For those starters, mistakes are still prone but they shouldn't gave up easily.

DCA has nothing to do with the general market sentiment (bullish vs. bearish), so you always execute the DCA buys. Otherwise, it is no longer DCA but falls for me into the standard trading category. If you intervene ("I'm not buying now, because we are currently in the bull market"), you decide on the trades yourself and do not take advantage of the fact that you are very often wrong with your own assessment and your own gut feeling ... which is exactly what DCA is for: You always buy at a fixed time for a fixed amount.

My DCA savings plans run parallel to my trading and HODL-ing plans and perform very well.

DCA only works depends on the time horizon you are willing to risk your money and not take it out. It's very easy to put your saving into some coin investment but most cannot handle their account being on negative for months. So instead they take losses because of fear instead of sticking to their DCA plan. Since it's DCA, timing isn't a big deal after all just make sure that you can hold it as long as you can.

DCA is not quick profits. If you've had, then you're very lucky to be on the right market condition but until then you can do averaging to participate in the market.