Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into KNOP for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $34,093, a return of 31%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $50,834 and grew to $75,840 — a 49% return.

Question 2

What is the best DCA strategy for KNOP?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when KNOP is overextended — outperformed standard weekly DCA by 19% over 5 years. The enhanced strategy achieved a 49% return vs 31% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into KNOP for 3 years (157 purchases, $15,700 total) would have grown to $22,452 — a 43% return. Enhanced DCA over the same period returned 73%.

Question 4

Is DCA into KNOP worth it?

Accepted Answer

Based on a 5-year backtest, DCA into KNOP returned 31% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 49% over the same period — a 19% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into KNOP for 5 years would result in approximately 3313 shares with a standard DCA approach (avg entry $8). Enhanced DCA targeting dips results in 7370 shares at an average entry of $7.

Question 6

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

Accepted Answer

Enhanced DCA into KNOP returned 49% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. KNOP's performance reflects its volatility as a energy asset. Enhanced DCA outperformed standard DCA by 19%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into KNOP?

Accepted Answer

Past backtest performance does not guarantee future results. KNOP is a energy 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 KNOT Offshore Partners LP dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into KNOP 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 19% higher returns than standard DCA while deploying more total capital into KNOP.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	-1%	0%	+1%
3-Year	43%	73%	+30%
5-Year	31%	49%	+19%

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Dollar cost averaging into KNOP — backtest results

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