This week, one article that was pretty heavily discussed was on the concept of dollar cost averaging (DCA).
The article states that the returns, based on the recent historical results of dollar cost averaging into exchange traded funds (ETF) is not too good.
A better implementation would be to dollar cost average only when the price of the STI ETF is below the average.
“I took monthly closing prices of the ETF over the 9 years and found that the average price is $2.977. I would then do a dollar cost average strategy only when the ETF is below this average price.”
An even better implementation is to double down on the dollar cost average when below the average.
However, this strategy had a problem, it means that my capital of $10,900 is not fully invested over the 9 year period. I tested another tweak to the …