Risk-Aware Strategies for DCA Investors

Let’s look at the the Dollar-Cost Averaging (DCA) investment approach that involves investing the same amount of money in a target security at regular intervals over a certain period of time, regardless of price. It can make it easier to deal with uncertain markets by making purchases automatic. It also supports an investor’s effort to invest regularly.

Table of Contents

  2. Stock Risk Engineering
  3. Stock Technical Indicators
  4. U.S. Recession Forecast
  5. Basic Stock Price Analysis
  6. Predicting Trend Reversals
  7. Portfolio Risk/Return Optimization
  8. Stock Breakouts
  9. ML/AI/Stat Stock Predictions
  10. Commodity Price Prediction
  11. TradingView Platform
  12. Macroaxis Wealth Optimization
  13. Bear Market Investment Strategies
  14. Inflation-Resistant Stocks to Buy
  15. Stock Market Monitoring
  16. Stock Technical Analysis
  17. Key Takeaways
  18. References
  19. Acknowledgements
  20. Infographics
  21. Appendix A: REIT
  22. Appendix B: Crypto
  23. Appendix C: Stock Fundamentals


Stock Risk Engineering

Eric Marsden’s Top 6 Reliability/Risk Engineering Learnings

  • Stock Value at Risk (VaR)
  • Stock Correlations

Stock Technical Indicators

U.S. Recession Forecast

Basic Stock Price Analysis

Predicting Trend Reversals

Portfolio Risk/Return Optimization

Stock Breakouts

ML/AI/Stat Stock Predictions

Commodity Price Prediction

TradingView Platform

Macroaxis Wealth Optimization

Bear Market Investment Strategies

Inflation-Resistant Stocks to Buy

Stock Market Monitoring

Stock Technical Analysis

Key Takeaways

  • DCA is one of the best strategies for beginning investors looking to trade ETFs.
  • Most Dividend Reinvestment Plans (DRIPs) allow investors to DCA by making purchases regularly.
  • Long-term DCA example: 401(k) plans for retirement offered by many American employers that have tax advantages for the saver.
  • DCA is a way for an investor to deal with short-term market volatility/risk.
  • Variant strategies for DCA to maximize ROI include scaled-up buying of securities in a downtrend market instead of a fixed amount and periodic purchase. Conversely, in an uptrend market, where shares are bullish, a scaled plan to sell is adopted.
  • Benefits of Dollar-Cost Averaging

Risk reduction, lower cost, ride out market downturns, disciplined saving, prevents bad timing

Bottom Line: An investor should aim to include DCA as an optional strategy, combined with other strategies (target asset allocation, diversification, regular portfolio rebalancing, etc.) using portfolio optimization and algo trading in Python.





Macroaxis U.S. Energy Stock Heatmap

Macroaxis U.S. Energy Stock Heatmap

TradingView: XOM 1Y performance 2022

TradingView: XOM 1Y performance 2022
AAPL close prices vs Aroon 25 Indicator

MacroAxis: Sector Rotations & Performance 2022

MacroAxis: Sector Rotations & Performance 2022
Stock normalized closing prices 2023

Appendix A: REIT

Appendix B: Crypto

Appendix C: Stock Fundamentals


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