Question 1

How much would I have if I DCA'd $100/week into CIG.C for 5 years?

Accepted Answer

Dollar cost averaging $100 per week into CIG.C for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $37,767, a return of 45%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $29,912 and grew to $45,409 — a 52% return.

Question 2

What is the best DCA strategy for CIG.C?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when CIG.C is overextended — outperformed standard weekly DCA by 7% over 5 years. The enhanced strategy achieved a 52% return vs 45% for standard DCA.

Question 3

What would $100/week into CIG.C be worth after 3 years?

Accepted Answer

Investing $100 per week into CIG.C for 3 years (157 purchases, $15,700 total) would have grown to $21,937 — a 40% return. Enhanced DCA over the same period returned 49%.

Question 4

Is DCA into CIG.C worth it?

Accepted Answer

Based on a 5-year backtest, DCA into CIG.C returned 45% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 52% over the same period — a 7% gain in return, while deploying more capital.

Question 5

How many shares of CIG.C would I have after DCA for 5 years?

Accepted Answer

Dollar cost averaging $100/week into CIG.C for 5 years would result in approximately 10347 shares with a standard DCA approach (avg entry $3). Enhanced DCA targeting dips results in 12441 shares at an average entry of $2.

Question 6

How does CIG.C DCA compare to the S&P 500?

Accepted Answer

Enhanced DCA into CIG.C returned 52% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. CIG.C's performance reflects its volatility as a utilities asset. Enhanced DCA outperformed standard DCA by 7%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into CIG.C?

Accepted Answer

Past backtest performance does not guarantee future results. CIG.C is a utilities asset whose price can fall as well as rise. While DCA reduces timing risk by spreading purchases over time, losses are still possible if the price declines significantly. Always invest within your risk tolerance and consider your overall portfolio diversification.

Question 8

What is the Companhia Energética de Minas Gerais - CEMIG dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into CIG.C at regular intervals. Enhanced DCA improves on this by using RSI (Relative Strength Index) signals to increase buy amounts during market dips (oversold conditions) and reduce or skip purchases when the stock is overextended. Over the 5-year backtest, this timing approach has delivered 7% higher returns than standard DCA while deploying more total capital into CIG.C.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	23%	26%	+4%
3-Year	40%	49%	+9%
5-Year	45%	52%	+7%

CIG.C DCA Backtest — Dollar Cost Averaging Results

CIG.C DCA Results: Key Findings

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Dollar cost averaging into CIG.C — backtest results

Buying the dips for Companhia Energética de Minas Gerais - CEMIG