Skip to content

petkosamoletko/dollar_cost_averging_backtest

Repository files navigation

Dollar Cost Averaging Strategies Comparison

Project Overview

This project compares three different Dollar Cost Averaging (DCA) strategies for investing in the VOO stock over a period of 10 years. Each month, a single trade is executed, with the broker being provided 1000USD of cash at the start of each month, based on the available amount, a trade is being on a specified day given:

  • Random Day: A trade is executed on a random day of the month.
  • Best Day: A trade is executed on the day where the closing price is the lowest in the month.
  • Regular Interval: A trade is executed on the 25th of each month, or the following available day if the 25th is a non-trading day.

Results

Best Time of Month Strategy

  • Time in Market: 9.99 Years
  • Time in Market: 80 Months
  • Total Stock Count: 533
  • Purchase Cost: $130,843.60
  • Gross Return USD: $122,189.32

Regular Interval Strategy

  • Time in Market: 9.99 Years
  • Time in Market: 80 Months
  • Total Stock Count: 524
  • Purchase Cost: $129,770.11
  • Gross Return USD: $119,061.10

Random Times of the Month Strategy

  • Time in Market: 9.99 Years
  • Time in Market: 80 Months
  • Total Stock Count: 526
  • Purchase Cost: $129,861.07
  • Gross Return USD: $120,786.91

Conclusion

The strategies are evaluated based on the total return generated over the 10-year period. The 'Best Time of Month Strategy' yielded the highest gross return, followed closely by the 'Random Times of the Month Strategy' and the 'Regular Interval Strategy'.

About

Backtesting diffrent simple DCA strategies, with trades occuring once a month for a 10 year period of time.

Resources

Stars

Watchers

Forks

Releases

No releases published

Packages

No packages published

Languages