【Feature】The Truth about Dollar-Cost Averaging and Leverage-Based Systematic Investment -07
“Pattern 07” considers the following situations.
【Case】
After purchase, it rises and reaches a peak,what happens when the price returns to the original value?This is a simulation.
For example, thinking it will continue to rise, you start buying, but eventually it peaks and reverses (resulting in a late-entry at a high price).
【Result】
・Purchase volume: no leverage >Leverage 2x >Leverage 3x
(The further to the left, the more you could buy)
・Average purchase price: no leverage<2x leverage<3x leverage
(The further to the left, the cheaper you could buy)
・Profit:No leverage > 2x leverage > 3x leverage
(The further to the left, the more profit / the smaller the loss)
In this case,the result ends up as a high-price entry, and (even with no leverage) a loss occurs.