Period Dollar Cost Average BacktesterHere is a simple script to calculate the profits and other dollar cost average strategy statistics. This strategy was created to avoid asset price volatility, so the pump and dump scheme does not affect the portfolio. By dividing the investment amount into periods, the investor doesn’t need to analyze the market, fundamental analysis, or anything. The goal is to increase the asset holdings and avoid fast and robust price movements.
This indicator has some configurations.
Amount to buy: the amount to buy at each time
Broker fee %: the fee percentage that the broker has for spot trade
Frequency: the frequency of the investments. Example: 1 Day means that every day, it will buy an amount of the asset
Starting Date: when the indicator will start the investment simulation
Ending Date: when the indicator will end the investment simulation
InfoCell With/Height: it relates to the panel for view purposes. Change the values to fit better on your screen.
This indicator has three lines:
Total Invested (green): total amount invested at the end of the period
Total Net Profit (pink): total profit by converting the amount of the asset bought at the latest closing price
Holding Profits (yellow): the amount that would be in the portfolio if the investor had invested all the capital in a signal trade at the beginning of the period.
The statistics panel has some information to help you understand buying the asset in one or more trades. So, besides those three lines that were mentioned above, here are the other statistics:
Entry Price: The price of the asset when the first investment was made
Gross Profit: Total amount of profit, not excluding the losses
Gross Losses: Total amount of losses, not excluding the profits
Profit Factor: The Gross Profit divided by the Gross Loss. A value above 1 means it’s profitable.
Profit/Trades: Net profit per trade. This includes the broker fees.
Recovery Factor: The Net profit divided by the relative drawdown. The higher the recovery factor, the faster the recovery of a loss
Total Asset Bought: The amount of the asset that was bought at the end of the investment plan
Absolute Drawdown: The total amount of losses that made the account balance go below its initial value
Relative Drawdown: The max drawdown that occurred, no matter the account balance amount
Total Trades: number of times the investment was made in the selected period
Total Fee: total Fee that was spent on the total investment
Total Winning Trades: the total amount of winning trades. A trade is considered a winner if the net profit is up compared with the latest investment.
Total Losing Trades: the total amount of losing trades. A trade is considered a loser if the net profit is down compared to the latest investment.
Max consecutive wins: the max amount of consecutive winning trades
Max consecutive losses: the max amount of consecutive losing trades
The chart above uses the default configuration of the indicator. Placed on the BTCUSD market, taking the time range of January 1st, 2018 to January 1st, 2022, 4 years. Buying a BTC amount with 10 USDT every day in that period would generate a more than 500% profit. Compared to the profit amount by just holding the count, which was close to 350% profit, the dollar cost average by period would be much more profitable.
Investmentidea
Hercules Ultimate DCA™The Problem Most People Face When Trading & Investing:
If anyone tells you they know where the market is going, they’re either lying or they’re time travelers.
The truth is NOBODY knows whether the markets will move up or down tomorrow, next week, next year, or over any period of time.
If we all knew, we’d all be rich. What would suit most Investors is to Invest consistently over long periods of time into sound financial products.
When Creating This Investing Tool We Had 5 Requirements in Mind:
1. To create a tool that ANYONE with little to no experience could use to outperform 95% of traders and speculators.
2. To ignore the Charts, Candlesticks, Indicators, and Volatility in any market so you can rest easy at night, never having to look at the price of your asset and still remain profitable.
3. To create a tool that tells you exactly HOW MUCH to invest every day or week which takes the stress away in guessing which direction the market will go.
3. To minimize your risk and and exposure to downside even if you started buying a crypto at or near the top of a market.
4. To buy a crypto at or near the bottom of every single major swing or trend.
5. To make Investing Easy, Simple, and Fun for the average joe.
We achieved that goal with the Hercules Ultimate DCA™ Tool!
WHO Created it & HOW was it Created?
This tool uses complex math and an algorithm designed by a Quantitative Military Mathematician (who wishes to remain anonymous, so we’ll call him Satoshi) over a period of 5 and a half months.
To start, we wanted to keep things simple, and extensively researched 6 of the top investing strategies of all time:
1. Buy and Hold
2. Active Investing
3. Dollar Cost Averaging
4. Index Investing
5. Growth Investing
6. Value Investing
Most of the strategies above work well depending on your goals or how risk adverse you are, however most DO NOT check off all of the requirements we mentioned above. Comprehensive home-work and price-action history in Cryptocurrency Markets led us to the Dollar Cost Averaging (DCA) Strategy.
According to Fidelity,
“Dollar Cost Averaging is a strategy where you invest your money in equal portions, at regular intervals, regardless of which direction the market or a particular investment is going. In other words, your purchases occur regardless of the changes in price for the stock or other investment, potentially helping reduce the impact of volatility on the overall purchase.”
With this in mind our High IQ math friend got to work and formulated over 17 Different Variable Algorithms on the DCA Strategy before arriving to the one we named Hercules Ultimate DCA™.
WHY the Hercules Ultimate DCA™ Works BETTER Than Anything Else.
Rigorous backtesting & forward-testing led us to create what we believe is the most effective and efficient strategy to extract the most money from the markets while at the same time minimizing nearly all the risk when investing your hard earned money in small increments in a truly effortless way.
The Hercules Ultimate DCA™ is essentially a DCA strategy put on steroids because no two investments are alike.
As we mentioned above, a traditional DCA approach assumes you purchase the same dollar amount of any asset at scheduled times, no matter where the price of your purchased asset is.
Example: If you have $1,000 dollars and decided to invest 50 dollars per week into Bitcoin, you would invest over a period of 20 weeks before you run out of money. Now, let’s assume the price of bitcoin is 50k during your first week, you would invest $50 dollars. Then next week the price rises to 60k, you would still invest $50 Dollars. The third week, if the Price of BTC rose to 70k, you would invest $50 dollars, so on and so forth. This approach is flawed because although you would still do better than many speculators and traders over a long period of time, it essentially leaves you penniless at the end of twenty weeks with no gunpowder left to buy BTC if it drops to all-time lows.
The Hercules Ultimate DCA™ works so well because it tells you to invest less as the price goes up and far more if the prices drops. What feels counterintuitive to most investors is typically what provides the most returns. Take the example above. If you have $1,000 dollars to invest weekly and Bitcoin currently sits at 50k, you would start by investing $50 dollars. Then next week, let’s say BTC rises to 60k, you would now invest $30 dollars. And your third week, BTC reaches 70k, you would now invest $10 dollars. Not only does strategy preserve your capital but it tells you to invest less into an asset at all time highs and far more into an asset at lows.
Now obviously the math in this tool is more complex, but it’s also more cost effective. At the time of writing this, the current Crypto Market has tanked from all-time-highs. Bitcoin currently sits at a price of $32,000 and is 51% down from its high of $64,900 dollars.
Just using this tool over the last 6 years, you would have invested a total of $5758.71 dollars and accumulated 4.328 Bitcoins for an average purchase of $1330.34 dollars. Your current Portfolio value would be $138,519.77 for a whopping percentage gain total of 2305%.
In other words, even with this massive crypto dump, you’d be rolling handsomely in your profits and you’d feel pretty smart too.
What’s more unique is that the Hercules Ultimate DCA™ will ALWAYS tell you to Invest More Dollars at the Literal Bottom of ANY market.
Dips in a market you believe in are far more exciting and will provide far more returns. The only way this tool fails is if the user (you) choose a market that goes to zero or is a rugpull.
How Do You Use the The Hercules Ultimate DCA™?
Step 1: Scroll to your “Invite-Only Scripts” in your indicators tab on Tradingview, then click on the indicator titled, “Hercules Ultimate DCA.”
Step 2: You should see the Indicator Populate at the Bottom of your chart with two lines, the Green line indicating how much you should buy that day, and the Blue line indicating how much of the asset you’ve purchased.
Step 3: (If you haven’t already) Make sure you turn on the Indicator Label. Navigate to the top right of the Crypto Product you would like to purchase and you will see a small settings gear. Once open, navigate on the left-hand side to the “Scales” tab and find the “Indicator Last Value Label.” Make sure it’s turned on and you will see the direct price.
Step 4: The amount you invest will now populate on the right hand side of the indicator with a number. That’s the exact dollar amount you invest in a disciplined manner no matter how large or small the number may seem.
Step 5: Get familiar with the indicator by opening the settings on the indicator itself. You will notice on the first tab it has a multiplier. If you increase it to 2, then the indicator will tell you to invest double the amount. If you input 10, then it will tell you to invest 10x the amount.
Step 6: Choose a Chart Timeframe and time of day to invest. If you choose to go with a once weekly investment then we recommend you increase your multiplier. If you choose a daily investment (and lack the necessary capital to invest large amounts daily) then we recommend keeping your multiplier down to lower numbers incase we see a lot of volatility. For most folks, once weekly on a 10x multiplier is most convenient. Set your chart to a weekly time-frame and increase your multiplier to 10. Then each week around the same time, you must invest.
Step 7: STAY DISCIPLINED. This method and tool only works if you invest the exact amount it tells you to invest over sustained periods of time.
Step 8: Enjoy Investing Made Easy 🙂
