【Feature】The Truth of Dollar-Cost Averaging and Leveraged Accumulation Investment-06
“Pattern 06” assumes the following scenarios.
【Case】
After purchasing, it declines without rising, hits a bottom,without returning to the original valuewhat happensis simulated.
For example, you judge that the bottom is near, begin purchasing during the decline, and eventually the bottom comes as expected and reverses.
【Result】
・Number of units purchased: 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 it was bought)
・Profit:3x leverage > 2x leverage > no leverage
(The more to the left, the more profit)
In this case,you could buy during the decline and, since there was no early rise, you could purchase very efficiently and profit.
As in this case,there are times when profits occur even if the original value does not return, which is a good aspect of dollar-cost averaging.