【Feature】The Truth of Dollar-Cost Averaging and Leveraged Accumulation Investment-02

“Pattern 02” is assumed to occur in the following cases.

【Case】

Similar to Pattern 01, the market is flat, butthe difference from Pattern 01 is the range of rise and fall.

In Pattern 01, we assumed cases where the rise and fall幅 are in the same proportion, butwhat happens when the rise has a larger proportion is simulated.

For example, after the initial purchase there is a sharp rise, followed by a fall, and it eventually returns to the original level.

【Result】

・Number of purchases: 3x leverage > no leverage = 2x leverage

（the more you go to the left, the more you can buy）

・Average purchase price: no leverage < 3x leverage < 2x leverage

（the more you go to the left, the cheaper you are buying）

・Profit: no leverage > 2x leverage > 3x leverage

（the more you go to the left, the more profit / less loss）

In this case, the negative leverage is large when there is a rapid rise followed by a fall. Even with no leverage, this case yields a negative profit. The high initial rise caused overpaying at a high price even with dollar-cost averaging.

・Others

This time the pattern was rise → fall, but if you swap it to fall → rise, leverage 2x and 3x profits deteriorate slightly. No leverage yields the same result.