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
TBH, I did not realize DCA have types. Because I have been advice by legendary members that we should do DCA to get more Coins. But I never heard about types of DCA. And after reading these, I can say, each person can come up with their own DCA strategy which might suits them best. Like if to some person this DCA deviation multiplier is not working fine then they go after the second one. But One thing I did not understand there is what does the meaning of "Base order" here. I hope someone would shed a light on it please.
Just like what a friend told me, he said he invested a lot of money on Bitcoin that he plans holding for long and that he structured his portfolio in two ways of investing plan, first one is buy and hold while the other one was for buying and selling, so as Bitcoin price dipps he sees it as an opportunity to trade the market by scalping.
Means he knows the difference between Trading and Holding Because at first case he is holding which will provide him good results IMO. I think you should ask your friend to share the stats of 2 years trading and Holding in BTC. And you should compare which was profitable. In my thoughts, the holding will be more profitable.
Now if you are doing extra or changing your DCA, then that is not really strict DCA anymore but instead a kind of hybrid that takes advantage of the dip, in the employment of buying on dips practices.
This might sound impulsive and a pretty barbaric strategy, but if we can afford to do something like that then why not.
It is not meant to change the DCA that was done before and the DCA still continues to be done, it's just that we can also take advantage of making some new purchases when a decline like this occurs because this would be a shame to miss.
I read your previous discussions and after reading the reply of Furious in previous page, I began to think should we even do DCA in dumps like these because we knew this is the lowest BTC could go. But if we do not know either it's the lowest or not then it is always a good strategy to save some fiat to enter to buy more Satoshi in dips. But still, I think DCA is not something a strict rule which we should follow like we could make decisions of taking entries with the sensitivity of market.
Let's say we have still $1000 in savings even after doing the DCA when the BTC is at $20k and after some bad news or whatever reason BTC again touches $17k or $18k then I think the wise decision would be to put all $1000 into the market instead still doing DCA at that moment.