DCA works by splitting timing decisions into repeated purchases, reducing the impact of emotion and volatility. Without a position cap or exit plan, however, it can become repeated buying of a weakening asset.

Execution rules

• Favor liquid assets with stronger long-term consensus.
• Keep the schedule and amount consistent instead of reacting to every candle.
• Set portfolio limits so one asset cannot dominate the account.

If market structure deteriorates, pausing new purchases can be more disciplined than averaging down aggressively.

Investing involves risk. This article is for reference only and does not constitute investment advice.