ETH DCA Strategy - 4 Year Backtest - Analysis Results

This sub loves to talk about how good DCA is as an accumulation strategy, so I have decided to do a backtest and analyze just that.

I have chosen to use the following parameters:
- 4 Year Backtest (since 2019)
- 5 USD entry per DAY

TL.DR: Extremely Profitable

Here are the results:

ETH DCA Strategy Graph

The numbers and stats:
- 4 Years of Daily DCA of 5 USD
- Total invested: 7310 USD
- Total value of investment today: 28778 USD
- Max value of investment: Almost 70000 USD
- Total ETH accumulated: 15.25 ETH

The data shows that DCA would be an extremely profitable strategy

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Here is another interesting graph though:

Cumulative ETH / Value Invested

This is another interesting graph in my opinion. This Showa the growth of your ETH position over time while keeping the same investment. We can see that over time, the amount by while your ETH portfolio increases went down.

Though this may seem pretty straightforward, I found it an interesting graph to look at.

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Conclusion:

DCA has been once gain proven to be a good long term investment strategy. You would make a LOT of money by investing into DCA in Ethereum over the past 4 Years

Of course, hindsight is 20/20, and we did not have this knowledge before. Therefore, this is perhaps a piece of trivia more than anything else, as predicting the next Ethereum is pretty difficult to say the least.

Perhaps in another post I will analyze DCA in a bear market, and see how effective it is there.