DCA Reverse Strategy failed after 1 year (18-March-2022 update)

in dca •  3 years ago 

It's been a long time since I have posted here but have to tell you... LESSON learned, I was always tempted by DCA (dollar cost average) strategies but after this experience I have a VERY CLEAR opinion about it.

1.) not worth the stress
2.) it's just a question of time when it fails.
3.) It just takes your energy, money and focus that you could have used to improve in a real strategy (anything with a Stop Loss).

It's interesting that even before I started testing it on many markets, even crypto, building different scripts and bots and *indicators, read other people's experiences and studies that it's actually a failure strategy, I have still had to find out the hard way. So after over 2 years in total and especially this 0.01 BTC loss after a year of trading, I feel like I don't need to test it anymore and can comfortably just ignore it and focus on a strict strategy with tight and stable SL.

18-march-2022-DCA-strategy-failure.png

As you can see in the picture, it was almost a 1000 pip dump from my first trade and to avoid liquidation would practically need double the size of my account - while it was working perfectly fine all those months before.

I can just advise and confirm that DCA strategy, is simply not a good idea at all. NOT even for a short amount of time as it just confuses you and gives false hopes. I hope I could help somebody with this experience.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!