Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into FOR for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $30,645, a return of 17%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $44,980 and grew to $60,038 — a 33% return.

Question 2

What is the best DCA strategy for FOR?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when FOR is overextended — outperformed standard weekly DCA by 16% over 5 years. The enhanced strategy achieved a 33% return vs 17% for standard DCA.

Question 3

What would $100/week into FOR be worth after 3 years?

Accepted Answer

Investing $100 per week into FOR for 3 years (157 purchases, $15,700 total) would have grown to $14,825 — a -6% return. Enhanced DCA over the same period returned 3%.

Question 4

Is DCA into FOR worth it?

Accepted Answer

Based on a 5-year backtest, DCA into FOR returned 17% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 33% over the same period — a 16% gain in return, while deploying more capital.

Question 5

How many shares of FOR would I have after DCA for 5 years?

Accepted Answer

Dollar cost averaging $100/week into FOR for 5 years would result in approximately 1195 shares with a standard DCA approach (avg entry $22). Enhanced DCA targeting dips results in 2341 shares at an average entry of $19.

Question 6

How does FOR DCA compare to the S&P 500?

Accepted Answer

Enhanced DCA into FOR returned 33% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. FOR's performance reflects its volatility as a real estate asset. Enhanced DCA outperformed standard DCA by 16%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into FOR?

Accepted Answer

Past backtest performance does not guarantee future results. FOR is a real estate 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 Forestar Group Inc. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into FOR 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 16% higher returns than standard DCA while deploying more total capital into FOR.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	-4%	1%	+5%
3-Year	-6%	3%	+9%
5-Year	17%	33%	+16%

FOR DCA Backtest — Dollar Cost Averaging Results

FOR DCA Results: Key Findings

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Dollar cost averaging into FOR — backtest results

Buying the dips for Forestar Group Inc.