🧠 Smart DCA Multiplier
A gentle dial for scaling regular contributions.
Standard dollar-cost averaging invests the same amount every time. The Smart DCA Multiplier is an educational experiment that suggests a multiplier between 0.5x and 2.0x based on how far price sits from its 200-bar average and how stretched short-term momentum is. Lower prices relative to the long-term average push the dial up, and stretched prices push it down.
Running live on a simulated market ·
The exact formula
ma = SMA(close, 200)
dist = (close - ma) / ma
r = RSI(close, 14)
raw = 1 - 2 * dist + (50 - r) / 100
mult = MAX(0.5, MIN(2.0, raw))
OUTPUT mult // single line between 0.5 and 2.0
How to read it
- Around 1.0: price is near its long-term average, so the base contribution applies.
- Above 1.3: price is well below its long-term average and momentum is weak.
- Below 0.7: price is well above its long-term average and momentum is stretched.
- Use it only to scale contributions within a budget you have already set, never to borrow or skip saving.
Why it might help
It explores whether a rules-based tilt can make regular investing a little more price-aware without abandoning the habit. It keeps contributions within fixed bounds so the plan never swings to extremes.
Limitations
- Assets in long declines will keep pushing the multiplier to its maximum.
- Has not been proven to beat plain DCA after costs and taxes.
- Requires 200 bars of history before it is meaningful.
Educational only – not financial advice. This page explains ideas and reports the news. It is not a recommendation to buy, sell or hold anything. Markets go up and down and you can lose money. Do your own research and consider talking to a licensed adviser.