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. 🚀