Cost averaging is a long-term strategy

Wait, this bot doesn't return 100% profit within a day?

gsmg-d0d avatar
Written by gsmg-d0d
Updated over a week ago

It is recommended to select markets for their long-term sustainability and sound fundamentals. Pick markets that you are willing to hold long-term to increase the probability of sustained profits. Market “hopping” is not recommended, because it can result in funds getting stuck in markets that are not actively trading anymore. This lowers the available funds in the account to actually trade the active markets that have been selected, thus lowering possible profits.

Time in markets > Timing markets

The longer the bot can trade in your selected markets, the further down the cost average of that market will go. This eventually leads to the cost average being 0 or negative which is great, because every following completed trade on those markets, is pure profit.

Keep in mind that we are not talking about "DCA" (Dollar cost averaging), but about actual cost averaging in the base-currency you are trading with.

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