Quote from: SamReomo on Today at 03:48:48 PM

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Quote from: Agbamoni on Today at 09:19:21 AM

Quote from: Furious 7 on August 19, 2023, 07:49:02 PM

[edited out]

DCA is a good strategy for regular people who aren't pros at investing. It saves a lot of trouble from trying to guess the best times to buy during market ups and downs. It's a way to invest slowly and steadily, which helps stop the urge to make big gains quickly. Professionals or more experienced investors often use DCA when they want to catch price changes. They can automatically make buy and sell orders based on how much the price changes and how much they want to invest. It's like a more advanced version of DCA. For instance, you could set it up so that if the price changes a certain amount, each new investment gets multiplied by 2 or 3 times.
DCA deviation multiplier
DCA #1 = Base Order - 1% = $29,700
DCA #2 = DCA #1 - 1% * 2 = $29,100 (Base order - 3%)
DCA #3 = DCA #2 - 1% * 2 * 2 = $27,900 (Base order - 7%)

DCA order size mulyiplier
DCA #1 = 1,000 USDT = 1,000 USDT
DCA #2 = 1,000 USDT * 2 = 2,000 USDT
DCA #3 = 1,000 USDT * 2 * 2 = 4,000 USDT

I think that your initial description of DCA is correct, and of course, you seem to already recognize that your DCA modifier is not really DCA anymore, but getting into a kind of DCA supplement that may well end up involving a kind of formula for buying on dips. Those are not bad ideas, but you have to be careful when you continue to add value in terms of making sure that you are not going to run out of money too soon because you were being overly ambitious in terms of buying too many BTC too soon.. but sure the idea is not bad.

Another thing might be to have a certain weekly or monthly budget that would be allocated for DCA, but if you are trying to employ the DCA to happen during the dip of any period that you choose, and if such dip does not happen, then you still end up employing the DCA for that period at the end of the period (after you had given it a chance to see if there might be a dip that allows you to buy a little bit more during the period with the amount of value that you had allocated for that particular DCA buying period).

I also think that his description of DCA is correct and somewhat really usable at the same time. The DCA works week during the dips because in those events we get the chance to accumulate more amount of Bitcoin with same fiat value. I also think that his DCA is too aggressive because he's spending a lot of money to buy too many Bitcoin in a short period and which is not going to be a good thing for someone who wants to accumulate a lot of Bitcoin.

You cannot really know if it too aggressive unless you know his total budget, but I do believe that the numbers are a bit unrealistic, and part of the reason that we talk about $10 per week or $100 per week is to attempt to be somewhat realistic in terms of what kind of budget that people might have. There surely are some people with higher budgets, but it is probably better to attempt to be more relatable to more people.

I know that even I talk about fuck you status being around $2 million - even though I know that some forum members might well be able to consider something like $200k as fuck you status. A $2 million investment portfolio should be able to fairly easily draw $6,666 of passive income per month, and so a $200k would ONLY be able to draw $666 per month, and surely there are forum members who consider that to be a totally acceptable amount for both their expectations of a current life style maintenance and even presuming that such amount be able to account for what they expect to be increases in their cost of living too.

Quote from: SamReomo on Today at 03:48:48 PM

I also think that DCA isn't always needed for accumulation of Bitcoin because sometimes we may buy Bitcoin at higher price value and that's why it's better to divide the amount you have and invest those divided values on times when the price of Bitcoins gets a dip. I know that sounds greedy, but that way you will be able to accumulate a lot more Bitcoin then with the traditional DCA techniques.

For sure, to some extent, I don't have any problem with BTC accumulation approaches that attempt to time the BTC price in such a way to be able to get better BTC prices - however, I do consider that the very newest people in bitcoin should not be attempting to fuck around with trying to time their buys unless they really already have a pretty solid plan that also involves regularly buying no matter what the BTC price. Sure, once they get to a certain BTC accumulation level then it will become more practical and reasonable for them to try to time the BTC price dips a bit because they already have BTC in the event that they are not able to buy as much as they would like to buy on the dip, if the BTC price ends up going up, they are likely already sufficiently prepared for the BTC price to go up.. and sure, maybe they will end up kicking themselves for failure/refusal to just buy rather than trying to strategize for the next BTC price dip that may or may not end up happening.

Quote from: SamReomo on Today at 03:48:48 PM

If you still want to go with DCA route then I think the best way to allocate the monthly budget for DCA would be to wait for a good dip in price of Bitcoin and continue DCA from the time of the first dip. If you see no dips for a certain amount of time which is unlikely to happen because we all know the volatility of the market and due to which dips can occur at least once in a month.

It's not guaranteed that the BTC price will dip every single month and even if the BTC prices does end up dipping, it is not guaranteed that the price will be anywhere even close to cheaper than it is now... we sometimes can get periods in which the BTC price might go up 50% or even more than 100%, but then it only dips like 10% or 20% and then goes on another upwards run. Sure maybe there will be a BIGGER correction later that goes into the 25% to 50% arena, but there is no way to really rely on such a dip taking place, and we cannot know for sure when such dip is going to happen.

If we look at our November 2022 low of $15,479, then we will see that the BTC price had doubled when it reached $31,818 ion July 13, but then our current low correction has ONLY been around 20% down to the current amount of $25,601 - but even with that, there are no guarantees in regards to whether we are going to get further dips, and the BTC price could end up going up to $35k without much if any further dip.. so in any event there can be a decent number of advantages to attempt to prepare for a variety of scenarios that you would be willing to accept without causing you to panic if you ended up overly preparing for a situation that did not end up playing out.

Also, I understand that it could be quite frustrating for anyone who might be relatively new to BTC and if they might ONLY have $10 per week that they are able to invest, so it could take a while for them to build up a side-pot that allows them to keep some money on the side for BTC price dips, and surely it is easier for the BTC investor (even if newbie) who has $100 per week that s/he is able to invest, but even someone with $100 per week might find that their investment amount is too small and it becomes even smaller if they choose to hold some of it on the side in order to wait for dips, so they still might have to decide from their real world budget regarding how much to buy in a regularly scheduled way, versus holding some aside for dips and then if the BTC price has already dipped whether the already dipped price causes them to tweak how much they are deciding to allocate towards DCA versus buying on dips.

Even with you, SamReomo, you have been registered on the forum for long enough (a little more than 7 year anniversary, congrats) - maybe even similarly to our fearless OP (Wind_FURY).. and accordingly, even a fairly modest DCA approach of $13 per week over the past 7 years would have gotten you to more than 1 BTC by now with a mere investment of $4,748 - yet at the same time, if you figure out what kind of strategies that you have been employing over the past 7 years, have you been able to significantly/materially beat those kinds of returns in terms of trying to strategize dips.

So yeah, more aggressive like $130 per week may well have ended up getting you to more than 10 BTC of accumulation, but if you were to have had attempted to employ a BTC accumulation strategy that was beyond your "free cashflow" then you may well have had ended up recking your self. . because you had over done it in terms of how much was available in your own budget.

Quote from: SamReomo on Today at 03:48:48 PM

A wise dip purchasing is always needed to accumulate more coins and we can't ignore that fact.

Yeah, but it is still not necessary to play around with that - unless you have already been accumulating BTC for a while... so in that sense it is not "needed" to take advantage of dips..

Quote from: SamReomo on Today at 03:48:48 PM

The best DCA strategy would be to wait for the DIP and purchase some amount and then wait for another DIP with even more intensity then purchase more coins, I know that won't be called as a true DCA technique but that will help to acquire more Bitcoin for you as an investor. Continue in that way until the process is completed and you have allocated everything that you had kept for DCA purpose.

Sure, that is called buying on dips, and surely there is nothing wrong with buying on dips, but you run the risk of both running out of money if you keep buying more and more and the BTC price keeps dipping, so as long as you have yourself covered to include preparations for dips that might not happen, then no problem, keep buying on dips and hope that your last reserve is not met too soon. Another problem is that if you are waiting for dips and holding money in reserves that you want to use to buy BTC, but you are waiting for your price to hit, and if you have not already bought some and you are just waiting for more dip, then you might end up not buying BTC because you were trying to be more greedy than you needed to be in order to suffiicently profit by just making the BTC buy - even if the BTC price may well end up dipping more after you had already stocked up.