【Feature】The Truth of Dollar-Cost Averaging and Leveraged Accumulation Investment-10
“Pattern 10” assumes the following situation.
【Case】
After purchasing, the price fell, then stagnated for a long time, rose a little but did not return to the original value, what would happen in this scenariois a simulation.
【Result】
・Purchase volume: 3x leverage >2x leverage >no leverage
(※the higher to the left, the more is purchased)
・Average purchase price: 3x leverage < 2x leverage < no leverage
(※the further to the left, the cheaper it is bought)
・Profit:3x leverage > 2x leverage > no leverage
(※the farther to the left, the higher the profit / the smaller the loss)
In this case as well,3x leveragehad the smallest purchase volume, yet yielded the highest profit. In this pattern, despite a substantial drop below the original value, substantial profit is achieved. By purchasing heavily during the long-term decline, the advantage of dollar-cost averaging with no leverage is enhanced by the additional effect of leverage during the subsequent small rise, amplifying the profit.