Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into LITE for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $374,685, a return of 1336%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $37,276 and grew to $725,819 — a 1847% return.

Question 2

What is the best DCA strategy for LITE?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when LITE is overextended — outperformed standard weekly DCA by 512% over 5 years. The enhanced strategy achieved a 1847% return vs 1336% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into LITE for 3 years (157 purchases, $15,700 total) would have grown to $201,922 — a 1186% return. Enhanced DCA over the same period returned 2158%.

Question 4

Is DCA into LITE worth it?

Accepted Answer

Based on a 5-year backtest, DCA into LITE returned 1336% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 1847% over the same period — a 512% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into LITE for 5 years would result in approximately 340 shares with a standard DCA approach (avg entry $77). Enhanced DCA targeting dips results in 658 shares at an average entry of $57.

Question 6

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

Accepted Answer

Enhanced DCA into LITE returned 1847% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. LITE's performance reflects its volatility as a technology asset. Enhanced DCA outperformed standard DCA by 512%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into LITE?

Accepted Answer

Past backtest performance does not guarantee future results. LITE is a technology 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 Lumentum dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into LITE 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 512% higher returns than standard DCA while deploying more total capital into LITE.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	125%	63%	-62%
3-Year	1186%	2158%	+972%
5-Year	1336%	1847%	+512%

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