Backtest dollar-cost averaging strategies with historical market data
DCA (Dollar-Cost Averaging) involves investing a fixed amount at regular intervals, reducing the impact of volatility.
This strategy is particularly effective in volatile markets like cryptocurrency.
Pro Tip:
DCA performs best during bear markets and high volatility periods.
Final Value: $31,200
ROI: 225%
Final Value: $28,400
ROI: 196%
DCA outperformed lump sum by 29% in this period
| Period | DCA Value | Lump Sum | S&P 500 | BTC Price |
|---|---|---|---|---|
| 2020 | $12,400 | $14,200 | $3,100 | $29,000 |
| 2021 | $28,700 | $32,800 | $3,800 | $47,000 |
| 2022 | $18,200 | $15,600 | $3,500 | $16,500 |
| 2023 | $31,200 | $28,400 | $4,200 | $42,000 |