DCA Simulator

Market Price

Portfolio Value

Average Cost

Playback Speed

Progress: 0%

Period: 0 / 120

Real-time Stats

Current Price $100.00

Current Units 0.00

Average Cost $0.00

Total Invested $0

Portfolio Value $0

ROI 0.00%

Parameters

Initial Amount: $0

Monthly Investment: $1000

Duration: 20 年

Investment Frequency

Market Type

Volatility: 15%

Starting Price: $100

What is DCA?

Dollar Cost Averaging (DCA) is a simple yet effective investment strategy. By investing a fixed amount regularly, you buy fewer shares when prices are high and more shares when prices are low, thereby reducing your average cost basis.

Core Formulas

Units per period: Q_i = P / Price_i

Total units: Q_total = ΣQ_i

Total invested: C_total = n × P

Final value: V_final = Q_total × Price_n

Return on Investment: ROI = (V_final - C_total) / C_total × 100%

Market Scenarios

Bull Market (Upward)

Prices show an overall upward trend with occasional pullbacks. DCA delivers solid returns in this market, though lump sum investing might perform better.

Trend: Up ↑

Bear Market (Downward)

Prices continue declining. DCA effectively lowers your average cost, positioning you for gains when the market recovers. Demonstrates the advantage of "accumulating at lows".

Trend: Down ↓

Volatile Market (Sideways)

No clear directional trend with high volatility. DCA performs best in sideways markets, fully demonstrating the "buy low, sell high" averaging effect.

Trend: Sideways ↔

Smile Curve

Prices decline first then recover, forming a U-shaped pattern. This is the ideal environment for DCA - buying large quantities at low prices before the rebound generates substantial profits.

Trend: U 型

Key Insights

Time is your best friend: DCA uses long-term investing to smooth out market volatility and achieve growth through compound interest.

Fear is the enemy, discipline is the weapon: During market crashes, most investors stop investing or sell due to fear. Disciplined DCA investors accumulate more shares at bargain prices.

The charm of the smile curve: By continuing to invest during declines, your lower average cost means faster profits when prices recover.

Can't predict, but can respond: No one can accurately predict market tops and bottoms. DCA achieves investing discipline without market timing or guesswork.

Practical Tips

Choose volatile assets (like equity funds) for DCA - the effect is more pronounced
Set up automatic deductions to ensure disciplined investing
Commit to at least 3-5 years to let DCA fully work its magic
Don't stop DCA during market crashes - consider doubling down instead
Review your portfolio periodically (e.g., annually) and adjust amounts based on life stage