Deutsch한국어日本語中文EspañolFrançaisՀայերենNederlandsРусскийItalianoPortuguêsTürkçePortfolio TrackerSwapCryptocurrenciesPricingIntegrationsNewsEarnBlogNFTWidgetsDeFi Portfolio TrackerOpen API24h ReportPress KitAPI Docs

I do backtesting for DCA-based investment strategies: community update! DCA or buy the dip?

bullish:

0

bearish:

0

Share
I do backtesting for DCA-based investment strategies: community update! DCA or buy the dip?

Hello everyone,

I do programming for a hobby and after learning Python (<3) I took a dive into Pine Script on Tradingview. You can try investment strategies on historical chart data.

After my first post I've implemented and tested several ideas from your comments:

  • daily, weekly or monthly DCA - result: statistically it doesn't matter on which weekday or which timeframe you do your DCA, do what's most comfortable
  • 'buy the dip' DCA - buy only when prices are at least 60% / 70% lower than last ATH
  • 'MACD-DCA' [1] - stacking your USD until buy signals occur / sell everything at local highs (sorry for TA, this is more swing trading than DCA to be honest)
  • RSI-investing - only invest at low RSI values - worst strategy (ignored) [1]
  • All tested with a monthly investment of $500 USD and 0.3% slippage / fees because buying isn't free
  • Not financial advice and always DYOR (don't do automatic MACD trading or something like that)

Bitcoin since 1/1/2018 (buying near ATH)

Total investment: $29k - all results rounded

simple DCA (1st of every month): $58k - $29k profit
buy-the-dip DCA 60% under ATH: $62k - $33k profit
buy-the-dip DCA 70% under ATH: $75k - $46k profit
MACD-investing: $75k - $47k profit

ETH since 1/1/2018

Total investment: $29k - all results rounded

simple DCA (1st of every month): $138k - $109k profit
buy-the-dip DCA 60% under ATH: $141k - $112k profit
buy-the-dip DCA 70% under ATH: $145k - $117k profit
MACD-investing: $120k - $91k profit

This is what buying 60% under last ATH looks like. Obviously during a bullrun a lot of money is being stacked, leading to a huge buy after the next crash. Bought the Corona-Dip like a Sniper:

https://preview.redd.it/76ex0wp774y91.png?width=1704&format=png&auto=webp&s=364d5db35185f6eb56c9365dd258498f8ea43fd4

Lucky-Loser-Investment - since may 2021 ATH

Total investment: $9,500 - all results rounded

simple DCA (1st of every month): $6,100 - 3,400$ loss
buy-the-dip DCA 60% under ATH: $8,300 - 1,200$ loss
buy-the-dip DCA 70% under ATH: $10,6000 - 1,100$ profit
MACD-investing: $8,300 - 1,200$ loss

A very short timeframe, thus the results should be taken with a bag of salt.

Long-time test - buying Bitcoin since 11/30/2013 (ATH)

Total investment: $54k - all results rounded

simple DCA (1st of every month): $1.12M - $1.07M profit
buy-the-dip DCA 60% under ATH: $1.04M - $0.99M profit
buy-the-dip DCA 70% under ATH: $1.01M - $0.96M profit
MACD-investing: $1.9M - $1.9M profit (wtf)

Please tell me if you have any ideas or strange investment strategies. Most strategies you will find will be sold to you by cherrypicked data. We can test that stuff.

[1] RSI: no matter what timeframe or levels I tried, buying according to RSI values has been worse than just DCA.

submitted by /u/Tavionnf
[link] [comments]
bullish:

0

bearish:

0

Share
Manage all your crypto, NFT and DeFi from one place

Securely connect the portfolio you’re using to start.