Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into MCY for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $54,224, a return of 108%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $35,622 and grew to $95,482 — a 168% return.

Question 2

What is the best DCA strategy for MCY?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when MCY is overextended — outperformed standard weekly DCA by 60% over 5 years. The enhanced strategy achieved a 168% return vs 108% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into MCY for 3 years (157 purchases, $15,700 total) would have grown to $25,782 — a 64% return. Enhanced DCA over the same period returned 81%.

Question 4

Is DCA into MCY worth it?

Accepted Answer

Based on a 5-year backtest, DCA into MCY returned 108% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 168% over the same period — a 60% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into MCY for 5 years would result in approximately 528 shares with a standard DCA approach (avg entry $49). Enhanced DCA targeting dips results in 929 shares at an average entry of $38.

Question 6

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

Accepted Answer

Enhanced DCA into MCY returned 168% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. MCY's performance reflects its volatility as a financials asset. Enhanced DCA outperformed standard DCA by 60%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into MCY?

Accepted Answer

Past backtest performance does not guarantee future results. MCY 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 Mercury General Corporation dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into MCY 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 60% higher returns than standard DCA while deploying more total capital into MCY.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	8%	13%	+4%
3-Year	64%	81%	+17%
5-Year	108%	168%	+60%

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Dollar cost averaging into MCY — backtest results

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