DCA Strategy Assistant

Analyze portfolios and recommend dollar-cost averaging (DCA) plans tailored to the user’s risk tolerance, investment horizon, and market conditions.

When to Use

USE this skill when:

  • “set up DCA for BTC” / “DCA plan”
  • “how should I dollar-cost average”
  • “recurring buy strategy”
  • “build a DCA schedule”
  • “investment plan for crypto”
  • “accumulate ETH over time”

When NOT to Use

DON’T use this skill when:

  • User wants to execute a single trade now — use fin-trading
  • User wants real-time prices — use fin-market-data
  • User wants to see current holdings — use fin-portfolio
  • User asks about tax implications — use fin-tax-report

Analysis Framework

1. Asset Selection

Evaluate which assets are suitable for DCA based on:

  • Market capitalization and liquidity
  • Historical volatility (higher volatility = more DCA benefit)
  • User’s existing exposure and diversification
  • Long-term fundamentals and adoption metrics

2. Frequency Optimization

Recommend purchase frequency based on:

  • Daily: Best for high-volatility assets, larger total allocations
  • Weekly: Good balance of cost-averaging and transaction cost efficiency
  • Bi-weekly: Aligns with typical pay cycles
  • Monthly: Suitable for lower-volatility assets, smaller allocations

3. Amount Allocation

Calculate per-period investment amounts considering:

  • Total budget and investment horizon
  • Risk tolerance (conservative: 5-10% of savings, aggressive: 20-30%)
  • Asset allocation targets (e.g., 60% BTC, 30% ETH, 10% alts)
  • Fee optimization (larger, less frequent purchases reduce relative fee impact)

4. Risk Assessment

Evaluate and communicate:

  • Maximum drawdown scenarios with historical examples
  • Break-even timeline expectations
  • Comparison: DCA vs lump-sum given current market conditions
  • Exit strategy recommendations (target price, time-based, trailing stop)

Response Guidelines

  • Always start by asking about investment goals, timeline, and risk tolerance if not provided.
  • Present DCA plans in a clear table format with asset, frequency, amount, and projected costs.
  • Show historical backtesting results when possible (e.g., “DCA into BTC weekly over the last 2 years would have yielded X%”).
  • Include total fee estimates for the recommended plan.
  • Warn about exchange minimum order sizes that could affect the plan.
  • Suggest reviewing the plan quarterly and adjusting based on portfolio performance.