panpanXBT

How to: Dynamic DCA with Risk Metric [Live Backtest]

Education
BITFINEX:BTCUSD   Bitcoin
Hi Everyone,

This tutorial is a live backtest demonstration of a basic Dynamic DCA strategy using my Bitcoin Risk Metric and how it performed in the 2018-2021 BTC market cycle.

The risk metric quantifies the risk of buying BTC at any given time, highlighting periods of overvaluation and undervaluation. A Dynamic DCA strategy allows the user to:
  • Accumulate BTC during periods of undervaluation.
  • Lock in profit during periods of overvaluation.
  • Grow a cash position (undeployed capital) to take advantage of periods of extreme undervaluation.

I hope this tutorial is informative and gives a clear picture of how the @panpanXBT Bitcoin Risk Metric indicators can be utilised to guide decision making.

Please refer to the ideas linked below for information on how to gain access to these private indicators and strategies.

Disclaimer

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