This project compares three different Dollar Cost Averaging (DCA) strategies for investing in the VOO stock over a period of 10 years. Each month, a single trade is executed, with the broker being provided 1000USD of cash at the start of each month, based on the available amount, a trade is being on a specified day given:
- Random Day: A trade is executed on a random day of the month.
- Best Day: A trade is executed on the day where the closing price is the lowest in the month.
- Regular Interval: A trade is executed on the 25th of each month, or the following available day if the 25th is a non-trading day.
- Time in Market: 9.99 Years
- Time in Market: 80 Months
- Total Stock Count: 533
- Purchase Cost: $130,843.60
- Gross Return USD: $122,189.32
- Time in Market: 9.99 Years
- Time in Market: 80 Months
- Total Stock Count: 524
- Purchase Cost: $129,770.11
- Gross Return USD: $119,061.10
- Time in Market: 9.99 Years
- Time in Market: 80 Months
- Total Stock Count: 526
- Purchase Cost: $129,861.07
- Gross Return USD: $120,786.91
The strategies are evaluated based on the total return generated over the 10-year period. The 'Best Time of Month Strategy' yielded the highest gross return, followed closely by the 'Random Times of the Month Strategy' and the 'Regular Interval Strategy'.