Enhanced DCA strategies
This repository contains thoughts and experiments on how to increase DCA investment strategy returns.
Currently this repository is under development and more strategies will be added in the future.
What's inside this repository
- Thoughts: Some thoughts on Dollar Cost Averaging and possibilities to improve it
- Strategies: Python implementations of the strategies
- Experiments | Backtests | Results: Jupyter notebooks exploring and comparing strategies to different asset price history. Current results, obtained from both bearish and bullish scenarios show that by tweaking DCA using world's information we can expect to improve DCA performance by 6%. Winner strategy's results are compared to classic DCA in the highlights below.
Highlights
Some numbers to catch your attention. BTC/USD price history used for these experiments goes from 2017-01-01 to 2022-05-08.
Last 3 Years performance
| Strategy | Total Investment | Final Value | Performance |
|---|---|---|---|
| DCA (Monthly, 400$ per month) | 14'400 | 34'360 | +138.6% |
| DCA (Weekly, 100$ per week) | 15'600 | 36'149 | +131.7% |
| (Currently) Best Enhanced DCA (Weekly, 100+? per week) | 16'650 | 42'770 | +156.9% |
Last 2 Years performance
| Strategy | Total Investment | Final Value | Performance |
|---|---|---|---|
| DCA (Monthly, 400$ per month) | 9'600 | 14'225 | +48.1% |
| DCA (Weekly, 100$ per week) | 10'400 | 15'290 | +47.0% |
| (Currently) Best Enhanced DCA (Weekly, 100+? per week) | 9'900 | 14'518 | +46.6% |
Last Year performance
| Strategy | Total Investment | Final Value | Performance |
|---|---|---|---|
| DCA (Monthly, 400$ per month) | 4'800 | 4'086 | -23.0% |
| DCA (Weekly, 100$ per week) | 5'200 | 3'693 | -21.4% |
| (Currently) Best Enhanced DCA (Weekly, 100+? per week) | 6'950 | 5'806 | -16.4% |
You can find the detailed results here.
Disclaimer
Nothing that you will find in this repository represents any kind of financial/investment advice