What This Calculates
Projected average price and total planned allocation.
Formula
Projected average = (current cost + planned cost) / (current quantity + planned quantity)
Example
A current 10-unit position at 100 with three planned 2-unit buys at 95, 90, and 85 becomes 16 units with a projected average of 94.38.
Notes Before You Use It
- DCA reduces timing pressure, but it can increase exposure to a falling asset.
- Decide the maximum total allocation before starting the plan.
- Keep a separate invalidation point for trades that are not long-term investments.
FAQ
Does DCA guarantee profit?
No. DCA is an execution method, not a return guarantee. It can reduce entry timing risk while increasing total exposure.
How many planned orders should I use?
Use enough orders to match your risk plan and exchange fee structure. More orders are not automatically better.
Can I use uneven order sizes?
Yes. Uneven size is common when a trader wants larger buys at lower prices.