OPEN-SOURCE SCRIPT
50 EMA Crossover With Monthly DCA
Recommended Chart Interval = 1W
Overview:
This strategy combines trend-following principles with dollar-cost averaging (DCA), aiming to efficiently deploy capital while minimizing market timing risk.
How It Works:
When the Long Condition is Not Met (i.e., Price < 50 EMA):
- If the price is below the 50 EMA, a fixed DCA amount is added to a cash reserve every month.
- This ensures that capital is consistently accumulated, even when the strategy isn't in a long position.
When the Long Condition is Met (i.e., Price > 50 EMA):
- A long position is opened when the price is above the 50 EMA.
- At this point, the entire capital, including the accumulated cash reserve, is deployed into the market.
- While the strategy is long, a DCA buy order is placed every month using the set DCA amount, continuously investing as the market conditions allow.
Exit Strategy:
If the price falls below the 50 EMA, the strategy closes all positions, and the cash reserve accumulation process begins again.
Key Benefits:
✔ Systematic Investing: Ensures consistent capital deployment while following trend signals.
✔ Cash Efficiency: Accumulates uninvested funds when conditions aren’t met and deploys them at optimal moments.
✔ Risk Management: Exits when the price trend weakens, protecting capital.
Conclusion:
This method allows for efficient capital growth by combining a trend-following approach with disciplined DCA, ensuring risk is managed while capital is deployed systematically at optimal points in the market. 🚀
Overview:
This strategy combines trend-following principles with dollar-cost averaging (DCA), aiming to efficiently deploy capital while minimizing market timing risk.
How It Works:
When the Long Condition is Not Met (i.e., Price < 50 EMA):
- If the price is below the 50 EMA, a fixed DCA amount is added to a cash reserve every month.
- This ensures that capital is consistently accumulated, even when the strategy isn't in a long position.
When the Long Condition is Met (i.e., Price > 50 EMA):
- A long position is opened when the price is above the 50 EMA.
- At this point, the entire capital, including the accumulated cash reserve, is deployed into the market.
- While the strategy is long, a DCA buy order is placed every month using the set DCA amount, continuously investing as the market conditions allow.
Exit Strategy:
If the price falls below the 50 EMA, the strategy closes all positions, and the cash reserve accumulation process begins again.
Key Benefits:
✔ Systematic Investing: Ensures consistent capital deployment while following trend signals.
✔ Cash Efficiency: Accumulates uninvested funds when conditions aren’t met and deploys them at optimal moments.
✔ Risk Management: Exits when the price trend weakens, protecting capital.
Conclusion:
This method allows for efficient capital growth by combining a trend-following approach with disciplined DCA, ensuring risk is managed while capital is deployed systematically at optimal points in the market. 🚀
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.