Welcome to my DCA Series, Round 1.
In this article I will take you through the process that I follow to determine which cryptocurrencies to buy whenever I dollar cost average.
I thought it would be fun and interesting to create a DCA portfolio, and track its performance over the next few years.
The portfolio would concentrate on the top 100 cryptocurrencies, but would include a few smaller cap coins that I’m especially interested in.
If you want to stay up to date on it, follow me on YouTube, Twitter and Instagram.
DCA SIGNAL TRIGGERED ON 09-01-2022
As I covered in my previous YouTube Short, my conditions to DCA were met on 09-01-2022. These include:
- The 7-day and 30-day Percent ROI of total crypto market cap flip bullish.
- After the total crypto market cap’s 2-day RSI dips below 10, it closes above its 7-day moving average and is up on a 7-day basis.
50% ALLOCATION TO BITCOIN OR ETHEREUM
I allocate 50% of my DCA funding to Bitcoin or Ethereum. Since I’m a long term value investor, I choose the under performer based on the 30-day percent ROI.
- Bitcoin 30-day percent ROI = -11.90%
- Ethereum 30-day percent ROI = -2.02%
- Bitcoin is the under performer in this DCA round.
50% ALLOCATION TO OTHER TOP 100 PROJECTS UNDERPERFORMING BITCOIN
We can use Coin Market Cap to find potential DCA opportunities by identifying projects currently underperforming Bitcoin on a 30-day ROI basis.
For example, Bitcoin’s 30 day ROI is -11.53% according to Coin Market Cap, so any cryptocurrency that has a 30 day ROI less than -11.53% is worth looking at.
Solana, with a 30 day ROI of -18.35% makes the short list.
Below is the initial short list. I excluded stable coins, Bitcoin forks, test networks, and projects that I have little hopes for.
- Solana -18.35%
- Avalanche -16.10%
- Uniswap -22.66%
- Cronos -22.80%
- VeChain -13.76%
- Internet Computer -22.21%
- ApeCoin -30.39%
- Decentraland -17.94%
- The Sandbox -24.70%
- Axie Infinity -17.19%
- Theta Network -13.19%
- IOTA -11.65%
- Maker -26.39%
- The Graph -11.55%
- Fantom -16.79%
- THORChain -24.70%
- Helium -43.29%
- Curve Dao Token -12.15%
- Enjin Coin -14.87%
- Basic Attention Token -13.77%
- Stacks -18.22%
- Zilliqa -11.53%
- Loopring -11.97%
- Mina -13.06%
- Kava -12.64%
- STEPN -24.38%
- Celo -15.37%
- Convex Finance -21.24%
- Gala 14.00%
- Compound -15.88%
- Arweave -28.69%
I like to get this list down to 10 or less, so I eliminate projects that have a worse ROI trend score than Bitcoin.
For example, Bitcoin’s 7-day best trend score is BULLISH, and it’s 30-day best trend score is BULLISH, so any project with best trend scores of MILDLY BULLISH or worse were excluded.
Solana has a best trend score of BULLISH on both a 7-day and 30-day basis, so it made the revised short list.
Below is the list of coins that made the revised short list.
- Basic Attention Token
- Celo
- Compound
- Convex Finance
- Decentraland
- Internet Computer
- Loopring
- Solana
- STEPN
- Zilliqa
DCA ROUND 1 PORTFOLIO
Below is the final allocation of my DCA funds for this round.
