Most things you are just saying Is off mate. FYI we don't have to wait For any drop in price before thinking of accumulating, this bitcoin we taking about, well I guess the reason you have such mentality is due to the fact that you have been In to shitcoins for so long which is bad ( and your post says it all). There's reason why DCA strategy is there for us to make use of. It gives us the chances to purchase bitcoin at any price interval. And I won't advice to use such strategy in shitcoins so that you won't endup getting self reckt so badly , because the risk in shitcoins are just so much , so please try to reduce such urge in investing in and focus mainly on your bitcoin accummulation to be in more safer side . I hope in that part that I bold when you mentioned coins , hope you talking about bitcoin so that you won't endup misleading newbies in investing in some shitty shitcoins.
You seem too committed to the DCA method that you tend to have forgotten that there is another method of buying called buying the dips. There is nothing wrong with setting aside some funds to buy when price dips and when waiting, using the DCA method to continue buying without stop and waiting for the dips to buy lump sum. This is a kind of combined method which is very effective. I think most experienced investors apply this method and I recommend the method for anyone who want to fully take advantage of different market conditions.
I can only talk from personal experience, I used to take this hybrid approach dca and bftd, but when I went back thru my data and calculated the difference from pure dca and this hybrid approach I found it didn’t quite pan out the way you are saying.
The main problem encountered and not all the time but most of the time you don’t get the dip properly. It’s very hard to hit the dip without a lot of eyes on glass ie time. Yes you can set orders but then you have to divide up your dip money to guess where it lands and sometimes you have leftovers. Instead of bftd I increase my dca amount for a set period of time and then bring it back to normal levels. For example for the next 4 months I increased my dca amount. In July it will go back to normal levels.
The second problem is outside the blockchain, you got a little nest egg for dips but then things come up trying to nibble on the egg from rl. Yes there lots of strategies to insulate and segment your money but the majority of people don’t have these in place. If you don’t have an emergency fund in place I would not recommend trying to bftd strategy.I’m absolutely not saying your wrong but in my own experience I keep coming back to the old adage; “Time in the market instead of timing the market” Pure DCA let’s you accumulate methodically and increase your time in the market without any timing requirements.
Why should you be bothered about timing the market, the DCA strategy already allows you to have an idea of the bitcoin price at all times, and the best way to buy the dip is to just fucking buy when the price has reduced a bit and a better way would be to buy down if you are not sure if that's the dip, let's say you split the money that you wanted to use to buy on the dip into parts and just buy on intervals that way you woudl take the most advantage of the dip and at times they are situation where by you exhaust the money you used to buy the dip and the price continues to dip, but one thign you should have in mind is that you can never always get it right, so yeah at times you would be most favoured by your strategy and other times you won't get it right, but since you said you were using the DCA strategy too then you shoudl be all right cause with the DCA you but at every market intervals.
Yeah life happens at times and we find ourselves in some uncomfortable situations where we have to use the money in our reserves to solve other problems other that what we kept them for which is buying the dip in this case.
Any one who doesn't have an emergency funds is literally gambling and should know that his investment isn't safe at any time, what if life happens and your house gets burnt down or hospital situation and all you have is yoir bitcoin holdings, you would surely sell them off, without the insurance of our emergency funds we are sure gambling rather than investing and your very right about this. In fact it's necessary we build our emergency funds as we accumulate bitcoin or even before we start our accumulation journey.