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Seeing DCA strategy been discussed a lot. But what about a "ladder-down" limit order strategy? Let me know your thought please!

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Seeing DCA strategy been discussed a lot. But what about a "ladder-down" limit order strategy? Let me know your thought please!

Hey all,

I'm trying to come up with a strategy to add some more sats in the 2nd half of the year for the the next bull run. Given I already hold some, I don't want to chase any pump or fomo in. So instead of a traditional time-based DCA strategy, I'm thinking maybe it's a better idea to "ladder-down" limit buy orders based on price (don't know if there's a better name for this). Below is an example.

https://preview.redd.it/26bywffnhf9b1.png?312&format=png&auto=webp&v=enabled&s=8e3ccfc813d016096de6f2079cc292264cadd3fd

IMO, comparing to DCA, this has at least 2 advantages -

  1. I personally view price as risk. This means I only buy when the risk is lower and automatically avoid it when risk is higher.
  2. This allows me to capture the downside volatility, aka "wicks". Those are not very uncommon for BTC and a limit order is basically the only way to capture them.

There are also 2 disadvantages -

  1. If the price goes sideway, I won't be able to add any.
  2. Risk of leaving money on an exchange and the opportunity cost of not having it in a safer place where you can get 5%+ now.

I wanted to see what do y'all think about this? What am I missing? Any thought, comment, or critic is highly appreciated!!

Update: Just checked my Strike app and realized now I can do recurring buy using fund pulling by ach from a bank account, instead of depositing it first! This is very good news and makes time-based a bit more attractive!

submitted by /u/Possible-Magazine23
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