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

cost-dollar-avg
trading-theory
dca

#1

Dollar-cost averaging (DCA) is an investment technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. The investor purchases more shares when prices are low and fewer shares when prices are high.1

@peter talks about this on YouTube here and here. That made me wonder what the best day, statistically to set an automatic schedule to buy Bitcoins on a programmed, scheduled basis. Taking a look at closing price YTD for 2017, it’s Friday! That’s the light blue bars in the graph below.

image

There you have it. Fridays on average are down and when they are up, they’re relatively shorter gains than the rest of the week. The next best day appears to be Wednesday.

I don’t know about you, but I will be setting up scheduled DCA investments into BTC every Friday. Keep in mind, this appears to be true of Bitcoin, but may not hold for other coins, or even for Bitcoin in a year’s time, so do your due diligence before implementing your own schedules, and review it periodically.

This chart was compiled from data obtained from investing.com and you can find my Ruby gist


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#2

Did you run data that goes further back?


#3

Omg! This is exactly similar to the data I put together when I first started researching 3.5 years ago. I should dig it up. (Did you guys notice who I invest in every Friday from one of my videos?)

Yours is much more colorful than mine!

This is why our spaceship is better than any other. We have brilliant people willing to grind on real actionable data that can help us all win. This right here is pinned.


#4

Great great info brother! Thank you so much


Friday sell off time
#5

Nah. I thought it might get skewed. My thinking there is that if you go back further, you will pick up a different pattern because the demographics of earlier investors is almost definitely different than the demographics of today.

Every six months, I plan to look at previous six months and adjust if necessary.


#6

That makes sense to me. Thanks for this


#7

It does change but Friday’s are almost always true. It’s a fascinating part of market psychology. I did a video on this months ago.


#8

That’s awesome. When you first mentioned it in your video, I really had to think about this strategy and as I thought about, I had to wonder, what are ways to fine-tune it to make it more optimal than just blindly setting a date. The day and time of day to execute the trade was the most obvious thing to analyze.

For now, I’m just getting all my infrastructure set up by acting on ideas with plans to circle back and iterate and refine as I learn more.

Always be moving forward.


#9

You know it’s actually my bad. I should have provided data as to why I buy in on Fridays (remember our precious litecoin? :sweat_smile:). Every Friday. Like clockwork.

I’ve just been doing it so long I guess it didn’t occur to me why I did it and should have explained! :man_facepalming:t2:

Tweeted. Worth.


#10

That’s the same problem I have with teaching computer concepts to new initiates. We forget what we didn’t know because it has become so ingrained over the years.

So your video calls Friday a profit taking day in order to “rest easy” through the weekend. That’s all fine and dandy in the stock market where market closes at 5pm on Friday until Monday morning. But I’m curious to see what’s going to happen when those same people bring that mentality to crypto-space and take a few years to realize it’s around the clock, 24x7x365. I almost didn’t make that connection until I realized I was up watching charts at midnight, 1am, 2am and suddenly realized what was happening.


#11

Oh hell yeah, another Rubyist in da house! :fist:t4:

Thanks for sharing your data!


#12

Here’s the thing. Until weekends become workdays, the cycle will persist as human nature has normalized around these consistent world behaviors. The meta is the meta.


#13

Yeah, but just watch. The tools will come out. People will have apps on their phones giving them alerts. Trading cryptos for many will be the new facebook.

Somebody will invent the snapchat of cryptonation that does an extraordinary job of keeping people constantly plugged in for fear of missing out (yea, FOMO as an addiction).

In fact, crypto trading may very well usher in the era of 24x7x365 stock markets.


#14

Good thing HODL bitcoin is literally the safest way long term. For those that know, the machine learning and what I’m now going to call FOMOapps will not take hold amongst our savvy crew. :rocket::wink:


#15

I fondly remember my normal days, when I could rest and watch the blue sky. Now my mind is corrupted with endless calculations, trying to model a complex world in order to beat it. Staying ahead of the curve, wise man say. It comes with great cost. Curiosity constantly sparked with uncharted lands we are exploring.

Charle Lee LTC is your friday vice.


#16

#17

This is fantastic!

I want to start dollar cost averaging from my next pay day but I’m wondering if it’s best to do weekly transactions (and suffer the seemly variable Coinbase fees and transaction times) or do a monthly investment.

Advice?


#18

I’m planning monthly - the price is going up so fast I’m starting to think that 3 weeks later it might have gone up ~£700


#19

That’s what I’m thinking as well but then there may be a correction soon that might be missed. So I can see the benefit of doing it weekly.

Maybe I’ll do weekly and see how it goes. I can always change next month so I’ll treat it like a learning experience!

FIGHT THE FOMO!


#20

you know it’s really nibbling at me, at my mind that is, the thought of BCH being actually technically superior to BTC and the effect it may have.
What if…
what if people start to actually move to bitcoin cash for daily transactions?
The Heart-Ver discussion really moved me towards BCH and there are other vids out there that do a great job at explaining the superiority.

Just going by that scenario, are you still expecting BTC to grind higher just because of it’s limited volume and it being the one to rule them all?
With BCH getting its position as a coin for transactions and doing boring daily stuff?