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DCA strategies/schedules?

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  • DCA strategies/schedules?

    I can't remember if this was recently brought up in another thread; but with recent markets so volatile, for those that use dollar cost averaging, how frequently are you purchasing funds per month or week? Or do you have a preference of scheduling earlier in the week/month or later?

    I'm more guilty of doing several larger sums (index funds) earlier in the year for Roths, depending on the funds/prices I'm tracking. Taxables I don't really have a set schedule either, but looking at DCA moving forward. Curious what others are doing or how their strategies may have evolved recently.
    "I'd buy that for a dollar!"

  • #2
    I found myself doing smaller amounts, more frequent. I did 6 transactions in the last month...when normally, I would only do 2 transactions. My roth were the same amounts, $500 each time, but my other account, vtsax, I did $250 3x throughout the month.

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    • #3
      I've normally done bi-monthly investments, but once all of the volatility started back in late-Feb, I moved to once weekly. I'm buying ETFs in taxable, MF's in retirement... I think the retirement is going in on Mondays, and taxable in on Wednesdays....but that's not really a part of my strategy at all.

      Retirement is still just set for normal, slow, steady investments (though I did triple the total monthly amount I'm sending in, to frontload the accounts & max out in ~June). For taxable, I basically set up my limit orders a little bit below current prices, and wait for the volatility to trip them. If all of the orders execute, I'll set up a second round for that week, but I cut myself off there. So with values currently up, I've got 3 sets of orders in right now... Last week's second order, this week's first, and a "really bad day" set of orders, to trigger in the event of a major drop (without checking, I think the RBD set is ~20% below today's values).

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      • #4
        Originally posted by kork13 View Post
        Retirement is still just set for normal, slow, steady investments (though I did triple the total monthly amount I'm sending in, to frontload the accounts & max out in ~June). For taxable, I basically set up my limit orders a little bit below current prices, and wait for the volatility to trip them. If all of the orders execute, I'll set up a second round for that week, but I cut myself off there. So with values currently up, I've got 3 sets of orders in right now... Last week's second order, this week's first, and a "really bad day" set of orders, to trigger in the event of a major drop (without checking, I think the RBD set is ~20% below today's values).
        I like that strategy. I may slowly go that route from VTSAX to VTI in taxable.
        "I'd buy that for a dollar!"

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