DCA vs Smart DCA, what do you choose?

[JayJuanGee]

I literally think both DCA and smart DCA have their own pecs as regards an investors choice of use for maximum benefits when considering investment.

I would however prefer to use a hybrid approach which may entail that I use DCA for holding a core portfolio like Bitcoin or S&P 500 and alternate with a smart DCA strategy for other altcoins or shitcoins or some minor stocks so as to get and achieve a vantage position while entering the market.

You are likely not incorrect to want to attempt to strategize in regards to your DCAing into bitcoin, as long as you are not fooling yourself into believing that you are necessarily going to end up performing better than a traditional DCA approach that just blindly follows a continuous ongoing buying approach (whether weekly or other reasonable intervals).

Regarding your perception that DCA works with shitcoins, that is a fantastical idea.

I just wrote another post on the topic, so why should I repeat myself.  Here is the relevant part of the post that I just made on the topic of thinking that is a good idea to DCA into shitcoins (or that DCAing equally applies to BTC and also to shitcoins). In sum, it is bullshit to have those kinds of ideas that it is a good idea to DCA into any shitcoin unless you can clearly figure out which shitcoin you are going to do it with and also to figure out some kind of a strategy to get in and to get out of such crap without necessarily presuming that such targeted shitcoin has any fundamental values that would actually warrant long-term DCAing into it:

[edited out]

You likely do not understand DCA very well if you think that it is a good idea to apply it to any "digital asset" or shitcoin.  That is absolutely retarded.

One of the underlying rationales for the employment of DCA is that the underlying asset has some strong enough fundamentals that are going to ultimately cause it to recover from any dip that it has and that in the longer term, the underlying asset is going up in value.  So DCA works with BTC because BTC has strong fundamentals and also BTC has tended to end up going up.

We cannot presume that shitcoins either have fundamentals or that any of them are going to go up in value, so you seem a bit retarded to be believing that the use of  DCA for shitcoins is going to end up working out.. and if you use DCA on shitcoins then you may well be fucking yourself for a very long time during the period that you are putting value into them and they continue to spiral into nothingness.   

Don't be retarded when it comes to DCA. 

You can use DCA on BTC, yet if you try to use DCA on any other asset (including shitcoins) you better have some confidence that there is either some fundamental value with the shitcoins or that the shitcoins will be able to pump enough for you to get out of them without your throwing money blindly into them merely because you are so dumb as to believe that DCA works for everything, when it does not.

I think traditional DCA is the popular choice in this thread and its something for
myself as well.

My opinion about Smart DCA is kind of two ways of looking at it:

1. Smart DCA is only smart when you can look back and see where the smart choices
should/could have been made

2. Smart DCA is really another name for buying when you have knowledge and experience
about trading, reading charts and being ultra focussed on the market. Most people dont
have the time to dedicate to that or even dont want to bother and are happy to just DCA
normally.

Smart DCA is for very experienced investors who have been in this market a long time enough and already applied Traditional DCA successfully. By experiencing in the market and investment with traditional DCA, gaining success with this strategy, and having enough time in the market, people understand about the market well enough to no longer have panic with their investment as well as know that dips, corrections are very good opportunities to amplifying effects from DCA strategy.

That also means such people won't feel fearful when price corrects or dips as it's opportunity they're waiting patiently for a long time, and they prepare money for buying dips. It's different with newbies who wait for dips but when dips appear, they turn to be uncertain, fearful and don't make purchases which they should do.

It seems to me that the difference between newbies and more experienced investors does not really have to do with their experience and/or their ability to detect dips (even though sure there may be some increased abilities in that regard), yet the more important point is that newbies (those with less than 1-2 cycles in BTC) should be focusing on preparing for up and accumulating bitcoin so that they can make sure that they are making progress towards having enough or more than enough BTC.  The longer term bitcoiners are in a better position to have had established, at least, a decent bitcoin base in order to be prepared for up (to prepare for either direction, yet preparing for up tends to be the direction that an overwhelming majority of newbies lack).

Now in your own situation notocactus, I see that you have been registered in this forum since late 2017 (unluckily or perhaps luckily?) at the top of that particular price run, and so if you had been taking advantage of your timeline in finding out about bitcoin, then you would have already had 2 full cycles in bitcoin (congratulations), and so in that regard, you may well already be largely prepared for UP, even though sometimes many of us are still attempting to relate to the guys who are still quite new to bitcoin accumulation, and so even though they are much later than some of us earlier arrivals, we still are able to identify that part of the focus of any newbie is likely to get started establishing some kind of a stake in bitcoin so that they have some level of preparation for up, even though low coiner status may end up lasting for quite a while, at least the newer arrivals should be able to take themselves out of no coiner status.

Sure it can be difficult to figure out how much any newbie needs to get exposed to bitcoin, and for sure, anyone getting into bitcoin needs to have some kind of discretionary funds to be able to potentially hold onto their bitcoin for the long term, such as 4-10 years or more, yet at the same time, an overwhelming majority of newbies who are looking into bitcoin might not end up either taking action to get started or to spend enough time looking at bitcoin in order to help to convince themselves that it is a good idea for them to get started rather than not.  Get off zero. .and better yet figure out some reasonable bitcoin position, such as between 5% to 25% of an investment portfolio (or income) into bitcoin, if that is possible for the person (newbie) to accomplish such.

[Raflesia]

Smart DCA is for very experienced investors who have been in this market a long time enough and already applied Traditional DCA successfully. By experiencing in the market and investment with traditional DCA, gaining success with this strategy, and having enough time in the market, people understand about the market well enough to no longer have panic with their investment as well as know that dips, corrections are very good opportunities to amplifying effects from DCA strategy.

That also means such people won't feel fearful when price corrects or dips as it's opportunity they're waiting patiently for a long time, and they prepare money for buying dips. It's different with newbies who wait for dips but when dips appear, they turn to be uncertain, fearful and don't make purchases which they should do.

It's quite understandable why traditional DCA is a popular choice including me who will still be there. Maybe in this case when @AxelAdlerJr's argument says it is more effective he himself has felt it but there are some things that need to be underlined here such as when we make this method an option then surely we have to wait for a correction to arrive and this can still be done if the predictions from the analysis we do in the market actually happen but it will be a little more troublesome because we have to be like traders who can even see the chat every day just to determine where we will enter (even our predictions can miss).
In addition, sometimes waiting is also too tiring especially the ratio in waiting for a certain price (according to what we predicted in the analysis) it can be speculative between this can happen and not. It's good when it happens but when it doesn't then we will definitely wait for another moment with the same conditions when the correction occurs.
For me it can hinder the DCA that is done, because even if they are experienced or not when the analysis we do will not always be the truth because it is clearly spoiled.

[Cossyblack]

Traditional (classic) DCA is better for most of us. We don't have to be FOMO, panic, fearful in the market with price changes either up or down.

This is main use case of Traditional (Classic) DCA but with Smart DCA, we will more likely to be FOMO if waiting too long to get a signal from Smart DCA indicator.

There is nothing perfect for everyone as DCA can be better for me but not better for you and oppositely. Indicator like Smart DCA is only one of factor in investment and if we can not control other things, ourselves, Smart DCA strategy can not help.

Waiting for a signal from a smart DCA indicator seems to me that we are timing the market which contradict the true essence of using the DCA strategy. What do we even need a Smart DCA indicator when we can use common sense and discretionary income to buy bitcoin regardless of price whether the price is high or too low. I rather prefer the traditional DCA to accumulate bitcoin instead relying on signals from a smart DCA indicator to buy bitcoin. It's my choices, others may prefer the smart.

[Taskford]

Waiting for a signal from a smart DCA indicator seems to me that we are timing the market which contradict the true essence of using the DCA strategy. What do we even need a Smart DCA indicator when we can use common sense and discretionary income to buy bitcoin regardless of price whether the price is high or too low. I rather prefer the traditional DCA to accumulate bitcoin instead relying on signals from a smart DCA indicator to buy bitcoin. It's my choices, others may prefer the smart.

You are quoting a post made from year 2024 but will reply on your opinion because you shared good insights.  Since DCA is really all about consistency, removes us seeking for perfect timing and emotions. Doing traditional DCA will let us accumulate consistently without getting bothered by price swings and signals. This one works so well for majority of long term investors, data's from history would provably point out that people doing DCA consistently wins and already made great profits.

That smart DCA is somehow useful for those people want to improve their entries, but it will just introduce them to possible waiting for perfect opportunity to come and this can trigger doubts and worst they get FOMO. This is the reason I rather choose the traditional one.

Since this is simple to execute and make us focus on possible bigger situations that might going to happen in future. Each of us have different strategies and tolerances, but for me that traditional DCA stands out and I think this is best reliable to build my portfolio for long term.

[CryptoYar]

[...]

It seems to me that the difference between newbies and more experienced investors does not really have to do with their experience and/or their ability to detect dips (even though sure there may be some increased abilities in that regard), yet the more important point is that newbies (those with less than 1-2 cycles in BTC) should be focusing on preparing for up and accumulating bitcoin so that they can make sure that they are making progress towards having enough or more than enough BTC.  The longer term bitcoiners are in a better position to have had established, at least, a decent bitcoin base in order to be prepared for up (to prepare for either direction, yet preparing for up tends to be the direction that an overwhelming majority of newbies lack).

[...]

Majority of beginners do not fail because they cannot find low prices, but because they are scared to begin at all, and waiting to find right time may mean missing years of growth that are much more important than temporary price changes.
Price increase preparation is not only about purchasing more Bitcoin, but also knowing reason why you own it and having simple plan since otherwise, most people panic during price swings and make poor decisions. Being already through few market waves places you in better mental state, as you have gone through both large rises and large falls and have confidence that new individuals just lack at the moment.
That is why, experienced holders can be most useful when they concentrate on patience and regularity other than tricks with timing. And although it is good advice to get off zero, percentage does not have to be large, as even small amount invested long term and growing slowly can be enough, as long as it is comfortable amount and can be held during price jumps.

[Ruttoshi]

It's quite understandable why traditional DCA is a popular choice including me who will still be there. Maybe in this case when @AxelAdlerJr's argument says it is more effective he himself has felt it but there are some things that need to be underlined here such as when we make this method an option then surely we have to wait for a correction to arrive and this can still be done if the predictions from the analysis we do in the market actually happen but it will be a little more troublesome because we have to be like traders who can even see the chat every day just to determine where we will enter (even our predictions can miss).
In addition, sometimes waiting is also too tiring especially the ratio in waiting for a certain price (according to what we predicted in the analysis) it can be speculative between this can happen and not. It's good when it happens but when it doesn't then we will definitely wait for another moment with the same conditions when the correction occurs.
For me it can hinder the DCA that is done, because even if they are experienced or not when the analysis we do will not always be the truth because it is clearly spoiled.

Using traditional DCA doesn’t focus on anyone's speculation on the market. You are regularly buying weekly or monthly without any concern of the market if it will dip or not. I think this is the best way to DCA because you keep your bitcoin accumulation ongoing and your bitcoin stash keeps increasing weekly/monthly.

Waiting for the perfect time to DCA is a waste of time because it will deprive you from increasing your bitcoin stash bit by bit since you are always waiting. If you're waiting for a price dip before you DCA, it's not called smart DCA but DCA and dip buying which wouldn't make you to be consistent and persistent in your bitcoin accumulation journey.

[barbodiano]

I think Smart DCA isn’t really trying to replace traditional DCA, it’s solving a different problem. Classic DCA optimizes discipline and emotion control, not price efficiency. Smart DCA trades consistency for selectivity. Yes, you may miss some deeper dips, but the idea is to avoid buying extended overheated prices during strong trends. It’s less about catching absolute bottoms and more about improving average entry during bull markets. Traditional DCA shines in long, uncertain timelines. Smart DCA shines when market structure is clearly bullish and corrections are shallow. So it’s not “smarter” universally, but context dependent. In my view, the real edge is combining both: baseline DCA for exposure, Smart DCA to deploy extra capital during corrections. Different tools, different goals.

[notocactus]

It seems to me that the difference between newbies and more experienced investors does not really have to do with their experience and/or their ability to detect dips (even though sure there may be some increased abilities in that regard), yet the more important point is that newbies (those with less than 1-2 cycles in BTC) should be focusing on preparing for up and accumulating bitcoin so that they can make sure that they are making progress towards having enough or more than enough BTC.  The longer term bitcoiners are in a better position to have had established, at least, a decent bitcoin base in order to be prepared for up (to prepare for either direction, yet preparing for up tends to be the direction that an overwhelming majority of newbies lack).

Preparations are all most important things for people in this market.
They can know about DCA.
They can hear that dips are great opportunities for investors.
They know that they should buy dips and hold a long time after that.

In practice, they don't prepare money for dip purchases and finance in general, they don't prepare mentality for taking dips while in such times the market will be very noise, social media will be full of fuds.

The biggest difference between experienced investors and newbie investors is preparation from finance, investment capital do mentality.

[catnine1]

I believe many of us are familiar with Dollar Cost Averaging, DCA but how about Smart DCA.

This thread is for discussion, and I am not concluding Smart DCA is actually Smart and better than DCA. 

• Visit this dashboard on CryptoQuant
  
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I wanted to remind you about the concept of Smart DCA, purchasing BTC during corrections, when the price drops below the 1W-1M Realized Price.

This strategy works well during a bull rally and is much more effective than classic DCA.

https://pbs.twimg.com/media/GJHh9JSXkAAtqM_?format=jpg&name=900x900

A quick glance gives me that is a good strategy but if I look deeper, it is not actually smart.

By using Smart DCA, simply glance at it, we see entries are below 1W-1M Realized Price but we will miss days, weeks before price drops behind the Realize price (blue line) and miss chances to buy when price is even lower than the Green areas that are entries given by Smart DCA indicator.

Share your thinking about this strategy please.

Personally I see a traditional DCA strategy is better.

thats the trap, right? "smart dca" is just tryna time the dip with a fancy line. by the time the indicator says buy, the big crash is over and u missed the best prices. then u just stress watchin charts, which is the opposite of chill dca.
set it, forget it, stack sats. simple dca wins for sleepin well at night.

[Sim_card]

In practice, they don't prepare money for dip purchases and finance in general, they don't prepare mentality for taking dips while in such times the market will be very noise, social media will be full of fuds.

This is why a newbie shouldn't bother about the dip and only focus on using DCA to accumulate bitcoin for at least one circle. Provided that he keeping his DCA ongoing weekly, regularly, consistently and persistently his portfolio will gradually increase overtime without thinking of selling.

As he keeps on buying and having more experience in the market and learning more, he has also set up his emergency funds and reserve funds within that first circle, he will understand when to buy at the dip because he's prepared for it. Having a long-term investment mindset and to only keep on buying and learning will give a brand new investor a broader knowledge about bitcoin.

Financial management is the most important thing every bitcoin investor needs be it new or experienced investor so that you don't make the wrong decision and regret your actions.

[JayJuanGee]

It seems to me that the difference between newbies and more experienced investors does not really have to do with their experience and/or their ability to detect dips (even though sure there may be some increased abilities in that regard), yet the more important point is that newbies (those with less than 1-2 cycles in BTC) should be focusing on preparing for up and accumulating bitcoin so that they can make sure that they are making progress towards having enough or more than enough BTC.  The longer term bitcoiners are in a better position to have had established, at least, a decent bitcoin base in order to be prepared for up (to prepare for either direction, yet preparing for up tends to be the direction that an overwhelming majority of newbies lack).

Preparations are all most important things for people in this market.

I think that getting started is the most important thing, and to get started all a person needs to know is whether he has discretionary funds and if he has common sense.  From my point of view, their is no need to delay getting started based on preparations as long as a person can calculate that they have discretionary funds and/or common sense.  They can do the various preparations after having had already gotten started.

They can know about DCA.

The do not need to know when they start, but yeah, DCA is likely amongst the best of ways to get started, since guys can adjust their level of investment to their budgets and their other perspectives in regards to bitcoin, and so if they feel like they do not know much of anything, then they would just start out investing a small amount.. such as $10.

They can hear that dips are great opportunities for investors.

That is misleading, but yeah, it could take a bit of time to learn the three techniques of buying bitcoin which is DCA, lump sum and buying dips.  Buying dips is problematic since we cannot know whether they will happen (especially for beginners) so therefore dips cause delays and also put the person in a wrong mindset in the getting started department.

They know that they should buy dips and hold a long time after that.

I have doubts about whether dips matter very much, since it is probably more important to figure out their cashflow mattters so that they can figure out their budget and how much they are able to put into bitcoin... and, sure it is likely better that guys establish a long timeline, such as 4-10 years or longer, it might take them a bit of time to figure that part out.

I have a list of 9 individual factors that I believe any bitcoin newbie should consider, yet they surely don't have to have any of those 9 factors figured out in order to get started investing into bitcoin.  The more they figure out, the better advantages they will have in terms of tailoring their involvement in bitcoin to their own individual circumstances.

In practice, they don't prepare money for dip purchases and finance in general, they don't prepare mentality for taking dips while in such times the market will be very noise, social media will be full of fuds.

I think that focusing on dips is a BIG ASS waste of time... especially for newbies.  The most important thing is figuring out their own individual factors and their budget... such as can they invest $100 per week? or some other amount and sure other aspects of shoring up and strengthening their cashflow management systems and/or practices in the event that they don't already have good cashflow management systems/practices in place.  When a person invests in something like bitcoin, back up funds become even more important in order to not be tempted to tap into the bitcoin at a time that is not completely of their own choosing, and surely it seems also that there should be some figuring out that investing into bitcoin is a 4-10 year or longer kind of an endeavor, even though it could take time for the newbie to figure that out and also to accept it without getting into a trading mentality... which is a problematic way to view bitcoin, even though surely guys end up getting into trading perspectives about the bitcoin that they end up buying.

The biggest difference between experienced investors and newbie investors is preparation from finance, investment capital do mentality.

Practice likely helps, and surely some newbies are better able to manage their finances than others.   Even though some people learn faster than others, I do still think that getting started is helpful in order to couple learning about bitcoin with experience... and yeah, having discretionary funds and common sense does help, yet I also understand that common sense is not so common anymore too... so some folks may well misjudge their own level of common sense and their susceptibility in being drawn in wrong directions.  I expect that around 97.5% of the population has common sense which would also have them not want to lose money in their bitcoin, and so their common sense would be more helpful to them if they get started in their bitcoin journey sooner rather than later, as long as they can figure out that they have discretionary funds, and they can figure out the various other particulars as they are getting started, and maybe like many of us, bitcoin continues to lure many folks into learning more and more and more about it and about matters related to it, which is especially true if a person had already gotten started buying it.

[edited out]

Financial management is the most important thing every bitcoin investor needs be it new or experienced investor so that you don't make the wrong decision and regret your actions.

Many aspects of financial management can be learned as we go as long as we have common sense and can figure out our limits.

Also, if we can figure out if we have discretionary funds, then we can start to invest into bitcoin with our discretionary funds and having some investment should help to inspire us to learn various aspects of personal financial management. and yeah, even if the skills for financial management are mostly basic skills, it still will likely take a quite a bit of practice to hone the various skills  so that we are largely spending within our means and making sure that we have cash cushions while we are building up our bitcoin stack size.

[Raflesia]

It's quite understandable why traditional DCA is a popular choice including me who will still be there. Maybe in this case when @AxelAdlerJr's argument says it is more effective he himself has felt it but there are some things that need to be underlined here such as when we make this method an option then surely we have to wait for a correction to arrive and this can still be done if the predictions from the analysis we do in the market actually happen but it will be a little more troublesome because we have to be like traders who can even see the chat every day just to determine where we will enter (even our predictions can miss).
In addition, sometimes waiting is also too tiring especially the ratio in waiting for a certain price (according to what we predicted in the analysis) it can be speculative between this can happen and not. It's good when it happens but when it doesn't then we will definitely wait for another moment with the same conditions when the correction occurs.
For me it can hinder the DCA that is done, because even if they are experienced or not when the analysis we do will not always be the truth because it is clearly spoiled.

Using traditional DCA doesn’t focus on anyone's speculation on the market. You are regularly buying weekly or monthly without any concern of the market if it will dip or not. I think this is the best way to DCA because you keep your bitcoin accumulation ongoing and your bitcoin stash keeps increasing weekly/monthly.

Waiting for the perfect time to DCA is a waste of time because it will deprive you from increasing your bitcoin stash bit by bit since you are always waiting. If you're waiting for a price dip before you DCA, it's not called smart DCA but DCA and dip buying which wouldn't make you to be consistent and persistent in your bitcoin accumulation journey.

By looking at this condition, it actually returns to our focus whether we are really ready with a more conventional way or do smart DCA because of course in terms of conditions if they really understand the market (although it is a little troublesome because they have to check charts and candles every day / week) but it could be profitable for them as the OP said in his link.

It's just that this method becomes a little more brutal than the more conventional way because the pressure when the price benchmark is not appropriate then we will definitely miss the moment.
So for me personally at this time will still make the conventional way that I have always done since a few years ago an option because this will I consider suitable for my style.

[Proty]

It's quite understandable why traditional DCA is a popular choice including me who will still be there. Maybe in this case when @AxelAdlerJr's argument says it is more effective he himself has felt it but there are some things that need to be underlined here such as when we make this method an option then surely we have to wait for a correction to arrive and this can still be done if the predictions from the analysis we do in the market actually happen but it will be a little more troublesome because we have to be like traders who can even see the chat every day just to determine where we will enter (even our predictions can miss).
In addition, sometimes waiting is also too tiring especially the ratio in waiting for a certain price (according to what we predicted in the analysis) it can be speculative between this can happen and not. It's good when it happens but when it doesn't then we will definitely wait for another moment with the same conditions when the correction occurs.
For me it can hinder the DCA that is done, because even if they are experienced or not when the analysis we do will not always be the truth because it is clearly spoiled.

Using traditional DCA doesn’t focus on anyone's speculation on the market. You are regularly buying weekly or monthly without any concern of the market if it will dip or not. I think this is the best way to DCA because you keep your bitcoin accumulation ongoing and your bitcoin stash keeps increasing weekly/monthly.

Waiting for the perfect time to DCA is a waste of time because it will deprive you from increasing your bitcoin stash bit by bit since you are always waiting. If you're waiting for a price dip before you DCA, it's not called smart DCA but DCA and dip buying which wouldn't make you to be consistent and persistent in your bitcoin accumulation journey.

By looking at this condition, it actually returns to our focus whether we are really ready with a more conventional way or do smart DCA because of course in terms of conditions if they really understand the market (although it is a little troublesome because they have to check charts and candles every day / week) but it could be profitable for them as the OP said in his link.

It's just that this method becomes a little more brutal than the more conventional way because the pressure when the price benchmark is not appropriate then we will definitely miss the moment.
So for me personally at this time will still make the conventional way that I have always done since a few years ago an option because this will I consider suitable for my style.

This smart DCA to me isn't something that should be consider over normal DCA. Timing the market as per weekly/ monthly  is something that is really stressful and the possibility of missing out in market may be there.However the smart DCA can work in line with normal DCA . It will be ideal to be doing DCA and being timing the market and still buy when there is a dip by so doing it won't be possible to miss out in opportunities that the market may offer while trying to time the market.

[leonair]

This smart DCA to me isn't something that should be consider over normal DCA. Timing the market as per weekly/ monthly  is something that is really stressful and the possibility of missing out in market may be there.However the smart DCA can work in line with normal DCA . It will be ideal to be doing DCA and being timing the market and still buy when there is a dip by so doing it won't be possible to miss out in opportunities that the market may offer while trying to time the market.

Normally, investing in Bitcoin according to your ability is the best example of DCA. When you think of investing a certain amount of money in Bitcoin at a certain time despite your ability, you will automatically be under a pressure that can put you under a lot of stress that you will be able to recognize that amount of Bitcoin at that time? When you invest that amount of money in Bitcoin despite your ability, then you will not be able to meet your daily expenses and you will have to sell those Bitcoins again for financial backup. So I think the best way is to invest as much as you have the ability so that they can be held for a long time. I think this is the smartest DCA.

[calcvat]

I believe many of us are familiar with Dollar Cost Averaging, DCA but how about Smart DCA.

This thread is for discussion, and I am not concluding Smart DCA is actually Smart and better than DCA. 

• Visit this dashboard on CryptoQuant
  
  • https://cryptoquant.com/community/dashboard/650de954ca432c72d6ef82b1
• It is built by @AxelAdlerJr on CryptoQuant and let's read his post about it on X.

I wanted to remind you about the concept of Smart DCA, purchasing BTC during corrections, when the price drops below the 1W-1M Realized Price.

This strategy works well during a bull rally and is much more effective than classic DCA.

https://pbs.twimg.com/media/GJHh9JSXkAAtqM_?format=jpg&name=900x900

A quick glance gives me that is a good strategy but if I look deeper, it is not actually smart.

By using Smart DCA, simply glance at it, we see entries are below 1W-1M Realized Price but we will miss days, weeks before price drops behind the Realize price (blue line) and miss chances to buy when price is even lower than the Green areas that are entries given by Smart DCA indicator.

Share your thinking about this strategy please.

Personally I see a traditional DCA strategy is better.

Simply put, it means buying when prices fall. This approach can work in both bull and bear markets, since lower prices let you build a larger position over time. The downside is that you have to monitor the market regularly and decide in advance how much you’re willing to invest, because dips can happen many times in a month or not at all when the market keeps moving up.

[red4slash]

Waiting for a signal from a smart DCA indicator seems to me that we are timing the market which contradict the true essence of using the DCA strategy. What do we even need a Smart DCA indicator when we can use common sense and discretionary income to buy bitcoin regardless of price whether the price is high or too low. I rather prefer the traditional DCA to accumulate bitcoin instead relying on signals from a smart DCA indicator to buy bitcoin. It's my choices, others may prefer the smart.

That might look good to some people but it can also backfire because we waste too much time or even lose the opportunity to be able to buy but because our benchmark is a certain price that we have prepared beforehand it makes us let time slip away when we have a very big opportunity to buy.
Traditional DCA makes us more comfortable because we can buy anytime regardless of the price as long as we can afford it and it makes us more consistent.

I wouldn't say this way (smart DCA) is bad because everyone has their own strategy but to achieve good consistency I think traditional DCA allows us to get a much higher chance of buying compared to smart DCA.

[Jewan420]

Waiting for a signal from a smart DCA indicator seems to me that we are timing the market which contradict the true essence of using the DCA strategy. What do we even need a Smart DCA indicator when we can use common sense and discretionary income to buy bitcoin regardless of price whether the price is high or too low. I rather prefer the traditional DCA to accumulate bitcoin instead relying on signals from a smart DCA indicator to buy bitcoin. It's my choices, others may prefer the smart.

That might look good to some people but it can also backfire because we waste too much time or even lose the opportunity to be able to buy but because our benchmark is a certain price that we have prepared beforehand it makes us let time slip away when we have a very big opportunity to buy.
Traditional DCA makes us more comfortable because we can buy anytime regardless of the price as long as we can afford it and it makes us more consistent.

I wouldn't say this way (smart DCA) is bad because everyone has their own strategy but to achieve good consistency I think traditional DCA allows us to get a much higher chance of buying compared to smart DCA.

It is undeniable that traditional DCA makes our investment journey comfortable and creates many buying opportunities. But you have to do something big or come out of your shell or take some risk to get more benefits. That is, create your own investment strategy or smart DCA considering your own mental state. In this area, the warning is that my own DCA strategy may be harmful for you or may be very risky. So, in the case of smart DCA strategy, give importance to your overall situation and try to limit yourself to traditional DCA before you become experienced.

I usually use last month's money in the case of DCA strategy, that is, I separate prudent money for investment from the money left after bearing the expenses of the entire month. From there, I separate the required money for backup fund and divide the investment fund money into 5 parts. I do weekly DCA with 4 parts and collect 1 part for the dip market so that I can take additional benefits by being aggressive in investment by understanding the opportunity in the recession market. Even I keep searching for new strategies from time to time and keep testing them.

[Raflesia]

By looking at this condition, it actually returns to our focus whether we are really ready with a more conventional way or do smart DCA because of course in terms of conditions if they really understand the market (although it is a little troublesome because they have to check charts and candles every day / week) but it could be profitable for them as the OP said in his link.

It's just that this method becomes a little more brutal than the more conventional way because the pressure when the price benchmark is not appropriate then we will definitely miss the moment.
So for me personally at this time will still make the conventional way that I have always done since a few years ago an option because this will I consider suitable for my style.

This smart DCA to me isn't something that should be consider over normal DCA. Timing the market as per weekly/ monthly  is something that is really stressful and the possibility of missing out in market may be there.However the smart DCA can work in line with normal DCA . It will be ideal to be doing DCA and being timing the market and still buy when there is a dip by so doing it won't be possible to miss out in opportunities that the market may offer while trying to time the market.

It depends on who's doing it but for me personally this would definitely go against my original concept of doing DCA.
Running with the traditional is how we do consistency and it becomes an important part that we cannot separate in DCA purchases so regardless of the price whether it is experiencing a correction or not as long as we have money that has been scheduled for purchase then instead of waiting it would be better if we immediately buy it. That is the basic understanding for me in DCA today. The goal is to minimize doubts because of course when the longer the delay, the more doubts will arise and it will be very dangerous in the end for ourselves because with that we cannot continue the consistency that we actually have to stick to when doing DCA.

[Emeraldo]

I think Smart DCA isn’t really trying to replace traditional DCA, it’s solving a different problem. Classic DCA optimizes discipline and emotion control, not price efficiency. Smart DCA trades consistency for selectivity. Yes, you may miss some deeper dips, but the idea is to avoid buying extended overheated prices during strong trends. It’s less about catching absolute bottoms and more about improving average entry during bull markets. Traditional DCA shines in long, uncertain timelines. Smart DCA shines when market structure is clearly bullish and corrections are shallow. So it’s not “smarter” universally, but context dependent. In my view, the real edge is combining both: baseline DCA for exposure, Smart DCA to deploy extra capital during corrections. Different tools, different goals.

I don't really know why it is called smart DCA when it is not really smart at all.
The smart DCA is like you are trying to buy the dio which doesn't make a common sense to me and this looks like another word that is used to make it looks like people are actually using the real DCA we all know about which is buying Bitcoin at consistent intervals.
I will never suggest or agree with op about the smart DCA because it is not even a DCA strategy at all.

Let's all concentrate on the DCA strategy we all know and stop the manipulation of trying to use the smart DCA when it not really a DCA strategy we'll know about. The Dollar Cost Averaging helps us to buy Bitcoin at continuous intervals and so that we don't miss any opportunity in the market as the price of Bitcoin keeps going up and down. This strategy is profitable in a long term purpose for those that want to smartly own Bitcoin.

[topbitcoin]

I don't really know why it is called smart DCA when it is not really smart at all.
The smart DCA is like you are trying to buy the dio which doesn't make a common sense to me and this looks like another word that is used to make it looks like people are actually using the real DCA we all know about which is buying Bitcoin at consistent intervals.
I will never sug

True, this scheme is similar to buying on the dip except that the difference is that it may be done repeatedly and not at one time when a larger decline occurs as it only leans when a correction occurs.

But the rest of it looks no different and indeed it would be more appropriate to say buy on the dip. It's just interesting to see the claim that this is more effective when if we look at the conditions further the risk of not happening in terms of effectiveness is clearly much more risky because of several things including when the expected price (in the dip) cannot be obtained then it is certain that those who make this purchase will be missed and will return to waiting which is the real weakness here.