What is your DCA out strategy?

By cryotosensei | CryptoSensei | 22 Dec 2022


What is your DCA out strategy?

Thanks to this sub, I have learnt the importance of an exit strategy. Specifically, we should plan for a DCA out strategy. Now this DCA out strategy varies from person to person as it needs to be tailored to our financial situation and living circumstances, but it seems that taking out your initial capital is a must, with your profits still in the game.

In regards to profits, many advocate taking incremental profits. For example, if your portfolio hits a particular milestone, you decisively take out a certain percentage (say 10%) of your profits. Then as your portfolio ascend to the next level and hits another milestone, you double down on profit-taking and take out another 15%.

My question is this: how often do you tweak your DCA out strategy? Of course we are in a bear market, with our portfolio casting different shades of red, but it may be good to consider this question in preparation for the next bull run. Do you take into account your varying circumstances? Let’s say you become a parent and decide to abandon this DCA out strategy as you want to leave all your crypto to your children? Or do you stick to your plan and refuse to let yourself waver because you want to expend your mental energy on other things?

originally posted on r/cryptocurrency 

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cryotosensei
cryotosensei

budding investor


CryptoSensei
CryptoSensei

chronicles of an English teacher

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