Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into HCI for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $59,341, a return of 127%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $38,022 and grew to $109,742 — a 189% return.

Question 2

What is the best DCA strategy for HCI?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when HCI is overextended — outperformed standard weekly DCA by 61% over 5 years. The enhanced strategy achieved a 189% return vs 127% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into HCI for 3 years (157 purchases, $15,700 total) would have grown to $24,291 — a 55% return. Enhanced DCA over the same period returned 48%.

Question 4

Is DCA into HCI worth it?

Accepted Answer

Based on a 5-year backtest, DCA into HCI returned 127% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 189% over the same period — a 61% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into HCI for 5 years would result in approximately 310 shares with a standard DCA approach (avg entry $84). Enhanced DCA targeting dips results in 572 shares at an average entry of $66.

Question 6

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

Accepted Answer

Enhanced DCA into HCI returned 189% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. HCI's performance reflects its volatility as a financials asset. Enhanced DCA outperformed standard DCA by 61%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into HCI?

Accepted Answer

Past backtest performance does not guarantee future results. HCI is a financials 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 HCI Group, Inc. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into HCI 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 61% higher returns than standard DCA while deploying more total capital into HCI.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	12%	20%	+9%
3-Year	55%	48%	-7%
5-Year	127%	189%	+61%

HCI DCA Backtest — Dollar Cost Averaging Results

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Dollar cost averaging into HCI — backtest results

Buying the dips for HCI Group, Inc.