[Feature] The Truth About Dollar-Cost Averaging and Leverage Dollar-Cost Incremental Investments -04
“Pattern 04” envisions the following scenarios.
【Case】
Like Pattern 03, it is a flat market, butunlike Pattern 03, the point is that it rose and then dropped sharply.
Then, if it slowly returns to the original valuewhat happens is the simulation.
【Results】
・Purchase lots: 3x leverage >2x leverage >No leverage
(The more to the left, the more purchased)
・Average purchase price: 3x leverage < 2x leverage < no leverage
(The more to the left, the cheaper the buy)
・Profit:3x > 2x > no leverage
(The more to the left, the higher the profit)
In this case, as with Pattern 03, even though the price returns to the original value,during the plunge we were able to purchase even more, so the profit increases. In this case, leverage demonstrates its ability to enhance performance.
・Others
This time it was a rise→fall pattern, but if you replace this with fall→rise, the 2x leverage slightly worsens earnings while the 3x leverage slightly improves them. No leverage yields the same result.