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DCA Position vs Cash Holding

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This indicator visualizes the performance of a simulated dollar-cost averaging (DCA) strategy compared to simply holding cash. It models the cumulative position size and value of buying a fixed dollar amount of the asset per candle over a configurable lookback period.

🔍 What It Shows:

Simulates buying $1 (or any amount) of the asset per candle

Tracks the total units accumulated and their current market value

Plots the difference between the DCA position value and total cash spent

Highlights when DCA buyers are underwater — a potential contrarian buy zone

📈 How to Use:

Values above zero indicate DCA outperformance vs cash

Values below zero signal structural drawdown — often a high-conviction bulk-buy opportunity

Use as a sentiment overlay to time discretionary adds or confirm regime shifts

⚙️ Inputs:

Lookback Window: Number of candles used to simulate DCA accumulation

DCA Amount: Dollar value purchased per candle

This tool is ideal for traders seeking to quantify accumulation efficiency, identify cycle inflection points, and visualize sentiment-weighted cost basis dynamics.
Versionshinweise
Profits as a percentage of cash deployed
Versionshinweise
Shade negative and positive profit regions

Haftungsausschluss

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