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Anyone else who is fearlessly buying the dip using DCA-type strategy?

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I ran full backtests for a modified DCA strategy (~4k backtests since 2018) where the lower we go beyond moving averages, the more you buy.

In 93% of cases, they worked out better than regular DCA.

Looking at a base amount and then applying a multipler as follows:

  • Below 200DMA: 2×
  • Below 50WMA: 3×
  • Below 100WMA: 4×
  • Below 150WMA: 5×
  • Below 200WMA: 6×
  • Above all MAs: 0×

This system:

  • Profitable in 94% of periods
  • Average return percentage +248.64%

DCA:

  • Profitable in 91% of periods
  • Average return percentage: +166.33%

Seems like buying heavily in bear market will win out over DCA quite nicely.

submitted by /u/Ill_Potential6779
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