Dollar Cost Averaging [DCA] - Best Days of the Week

cost-dollar-avg
trading-theory
dca

#41

@peter I was just curious as to why you are doing the DCA on chuck, is it because you like him and believe in the coin as a stable reliable coin? I mean I assume you have been thinking of doing DCA on different coins, or do you feel that others are too volatile? How bout DCA on BTC, NEO or OMG?


#42

@ancesica The data I used did not specify a timezone for when it determined open and close prices (I used the close price). However, my best guess is that the close price is midnight UTC.

Michael


#43

@mwlang - CONGRATS on getting the AMAZE IDEA BADGE! You earned it!

24 PM


#44

Well deserved! …


#45

So I’m starting to DCA a bit of my paycheck via ACH to Coinbase every 2 weeks. I had a recurring transaction to buy BTC there from that deposit to my USD wallet, but then I realized that I should cancel that and buy it from GDAX (on FRIDAYS!) to avoid the fee. But upon cancelling that recurring transaction, I’m not finding the place to set up a recurring transfer via ACH/my bank to Coinbase USD wallet. Is there an option to do that or will I have to do this manually all the way? It takes 6 days for it complete the transaction.


#46

I just started doing that too and could not find a way either. Now I just make a xfer on Friday and have money for GDAX on Thursday when I get home from work. Only have to wait the first week and not forget to reload on Friday.


#47

so i get a better perspective of how DCA works . Lets say i want to invest $50 a week like clockwork on a coin . Ill use vertcoin as example . Seven days prices 2.03 2.79 3.34 3,02 3.28 3.07 3.68 i divide each amt per day by $50 to calculate my number of shares then i multiply the shares by each dollar amt per day then add them up to calculate my profit or loss for the week ?


#48

For your given scenario:

Total Coins: 119.2
Total Spent: 350.0
Total Worth: 438.64
Weeks invested: 7
Unrealized Profit: 88.64

A small Ruby script to figure it out:

prices = [2.03, 2.79, 3.34, 3.02, 3.28, 3.07, 3.68]
invest_amount = 50.0

total_coins = 0.0
total_spent = 0.0

prices.each do |price|
  total_coins += invest_amount / price
  total_spent += invest_amount
end

total_worth = prices.last * total_coins

puts "Total Coins: #{total_coins.round(2)}"
puts "Total Spent: #{total_spent.round(2)}"
puts "Total Worth: #{total_worth.round(2)}"
puts "Weeks invested: #{prices.size}"
puts "Unrealized Profit: #{(total_worth - total_spent).round(2)}"

#49

Thanks but you said 7 weeks invested I was talking 7 days Is unrealized
profit 7 days or 7 weeks?


#50

I said, “7 weeks” because you were doing $50/wk. After re-reading what you posted, you said “seven days” of prices, so there’s a disconnect there. It doesn’t matter what happens each day if you’re only buying every week. What matters is the price you bought at each week, so you need to look only at the price you bought the coins at. The question to solve: “how much buying power does $50 give me this week?” The more buying power, the more coins $50 buys. So if we pretend the prices you gave me were weekly snapshots of the prices, then the profits would be at the end of the 7 weeks. If you sold all coins after 7 weeks at 3.68, then your “unrealized profits” becomes “realized profits” – that is, cash in the bank or bitcoins in your bitcoin wallet, as the case may be.

The same principle would apply if those were daily prices and you invested $50 ea day. Whether your schedule is daily, weekly, monthly, a consistent investment yields an average cost per coin that is either profitable if overall trend has been up over time or lost if overall trend has been down.


#51

Sorry way too confusing or maybe I was just a terrible math student . this
is a new week I’ll get a better perspective of profits for this week by
Saturday


#52

Hi came across another article on best day to invest in stock market. Short version is every Monday for weekly, and on the 23 of the month for monthly.
best-day-to-invest


#53

Hi, know I am replying late, you have likely solved problem by now. But anyway here is how I would do it.
Take the amount of money per period ($50.00) divide it by the share price this will give you the number of shares for that period. Add up all the shares, you should get 119.2 Total Shares. Add up all the money invested, should get $350.00 Total Amount Invested. Total Shares multiplied by the last share price gives you the Current Value of Portfolio, which should be 119.2 X $3.68 = $434.68.
Current Value of Portfolio minus Total Amount Invested equals your profit if you sold all the shares at the current price. $434.68 - $350 = $84.68 profit. the portfolio gain/loss in percent is ((Current Value of Portfolio minus Total Amount Invested) divided by Total Amount Invested) multiplied by 100 equals profit percent. (($434.68 - $350)/$350) X 100 = 25.33%
You can also get the Average cost per share, Total Amount Invested divided by Total Shares is Average cost per share. $350/ 119.2 = $2.94


#54

This is for normal stocks. For Crypto’s it is Friday typically Monday the prices are on the rise as people enter the market and it falls on Friday because people are leaving the market for the weekend.


#55

Lovely thread… Anyway, I come across this article. I think this will be a good tool to this cost dollar averaging technique. check it out. Tell me what you guys thinks. https://www.theinvestorspodcast.com/cryptocurrency/bitcoin-mayer-multiple/ . If you guys want to know more details visit http://www.runtogold.com/the-great-bitcoin-bull-market-of-2017/ - great article

cheers


#56

this is very interesting that prices always dip on Friday… I will try DCA from now on. Not sure if $200/week is enough to make any difference…


#57

Finally I see da Booins!!!
and DAMN that’s a nice rock on her finger.
Did you buy it with crypto? lol


#58

I looked at January and February 2018 data, and it appears that Sunday so far this year has the best day to DCA, then Thursday. I wonder if it changed if everyone started DCAing Friday?


#59

Back by Popular Demand! Here’s an updated chart, which is covering both the wild bull run of late 2017 and the huge retracement of Q1 2018:


#60

Nice! These are interesting results.