In a previous article[1], we discussed Bitcoin’s top-10 performing days. We then tested a buy and sell strategy based on these days, which yielded a return of less than 10 percent. However, there were obviously no losses, with 10 trades executed across a trading period of 10 months, which is low work for the low reward. But, what if there was a way to do even lesser work, for a higher reward, and one that wasn’t reliant on a ‘magic calendar’ at that?
Always wanna be there
Averaging is a great thing, isn’t it? A high of 100 and a low of 0 is averaged to a par and modest 50, despite losing everything. While averaging, or in the investment world, dollar-cost averaging (DCA), isn’t as glamourous as x100 leverage on multiple breakout ranges and riding to the moon in a gold Lambo, it works, far better than you think.
Take the discussed top-10 best performing days, and let’s compare that to a simple DCA strategy. What if you didn’t get a ‘magic calendar’ and instead decided to buy, let’s say, $10 worth of Bitcoin every day, regardless of the daily price performance.
For the 305 days between 1 January and 31 October, you’d buy $10 worth of Bitcoin[3] every day, amounting to $3,050 in Bitcoin. Obviously, this is across 305 transactions, which is a pain, but if automated, it’s a one-time effort. Further, since you’re just buying Bitcoin, you’d just have to pay a one-time order fee for the buy-order.
Let’s say you decide to wrap up the DCA[4] on the 31st of October, the end of the period. You take a look at your buying history and you find this,
| DCA | $10 |
| Total Bitcoin | ₿ |
