Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into MRK for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $37,798, a return of 45%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $29,356 and grew to $46,779 — a 59% return.

Question 2

What is the best DCA strategy for MRK?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when MRK is overextended — outperformed standard weekly DCA by 15% over 5 years. The enhanced strategy achieved a 59% return vs 45% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into MRK for 3 years (157 purchases, $15,700 total) would have grown to $21,757 — a 39% return. Enhanced DCA over the same period returned 55%.

Question 4

Is DCA into MRK worth it?

Accepted Answer

Based on a 5-year backtest, DCA into MRK returned 45% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 59% over the same period — a 15% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into MRK for 5 years would result in approximately 260 shares with a standard DCA approach (avg entry $101). Enhanced DCA targeting dips results in 321 shares at an average entry of $91.

Question 6

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

Accepted Answer

Enhanced DCA into MRK returned 59% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. MRK's performance reflects its volatility as a healthcare asset. Enhanced DCA outperformed standard DCA by 15%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into MRK?

Accepted Answer

Past backtest performance does not guarantee future results. MRK is a healthcare 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 Merck & Co. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into MRK 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 15% higher returns than standard DCA while deploying more total capital into MRK.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	27%	46%	+19%
3-Year	39%	55%	+17%
5-Year	45%	59%	+15%

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Dollar cost averaging into MRK — backtest results

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