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Best day to DCA according to historical data

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by COINS NEWS 243 Views

I often read on this sub that it's best to do weekly DCA on a sunday, because of the weekend dips.I dont really believe this to be the case, so i decided to throw together some data and see what the differences are for each day in a weekly DCA.

To have a large enough dataset, I'm going to start from 5th of January (to get to same amount of weeks invested for every day) 2020 until today (14th August 2021). I chose bitcoin as the coin we invest in, and look at the profits we would have made if we invest 100 dollar each week an a certain day. I used https://dcabtc.com/ to calculate the prices.

Without further ado, here are the results for each day:

Starting 5th January 2020

Day of the week Profit
Monday +236,22%
Tuesday +234.30%
Wednesday +231.63%
Thursday +217.64
Friday +216.88%
Saturday +217.26%
Sunday +224.40%

As we can see from this historical data, monday seems to be the best day. However this data takes the starting price for the day, so one could argue, that DCA on sunday, at the end of the day is the most profitable.

On the other hand, the percentages between monday and tuesday are pretty close, so if you want a safe bet on the best day for your DCA strategy it seems during the monday would be a great time to do it.

I didn't expect to get these results, there actually seem to be some significant differences. After seing this results, I wondered what it would be like if I increased my dataset all the way back to 2013.

Starting 1st January 2013

Day of the week Profit
Monday +13,914.80%
Tuesday +13,670.20%
Wednesday +12,955.72%
Thursday +12,829.78%
Friday +12,756.28%
Saturday +12,801.15%
Sunday +13,340.83%

I had expected that over a longer period of time, the percentages would even out. However, it just seems to confirm the data we got from the first dataset.

So i'd hate to admit to say was wrong, but is seems it is best to DCA on (the end of) Sunday!

Edit: People seem to be confused about timezones, I'll just place what I've been commenting here:

The cryptoworld uses UTC for its charts, also the charts you are watching. For example, my daily chart starts at 2:00 CET because of my timezone. So you have to look at what time locally your daily candle starts.

tldr; DCA on end of sunday/start of monday = lambo

submitted by /u/Baatus
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