Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into MPWR for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $59,880, a return of 129%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $30,589 and grew to $88,058 — a 188% return.

Question 2

What is the best DCA strategy for MPWR?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when MPWR is overextended — outperformed standard weekly DCA by 58% over 5 years. The enhanced strategy achieved a 188% return vs 129% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into MPWR for 3 years (157 purchases, $15,700 total) would have grown to $27,497 — a 75% return. Enhanced DCA over the same period returned 111%.

Question 4

Is DCA into MPWR worth it?

Accepted Answer

Based on a 5-year backtest, DCA into MPWR returned 129% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 188% over the same period — a 58% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into MPWR for 5 years would result in approximately 43 shares with a standard DCA approach (avg entry $604). Enhanced DCA targeting dips results in 64 shares at an average entry of $482.

Question 6

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

Accepted Answer

Enhanced DCA into MPWR returned 188% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. MPWR's performance reflects its volatility as a technology asset. Enhanced DCA outperformed standard DCA by 58%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into MPWR?

Accepted Answer

Past backtest performance does not guarantee future results. MPWR 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 Monolithic Power Systems dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into MPWR 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 58% higher returns than standard DCA while deploying more total capital into MPWR.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	17%	21%	+4%
3-Year	75%	111%	+36%
5-Year	129%	188%	+58%

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Dollar cost averaging into MPWR — backtest results

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