Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into NGG for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $29,182, a return of 12%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $31,105 and grew to $36,777 — a 18% return.

Question 2

What is the best DCA strategy for NGG?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when NGG is overextended — outperformed standard weekly DCA by 6% over 5 years. The enhanced strategy achieved a 18% return vs 12% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into NGG for 3 years (157 purchases, $15,700 total) would have grown to $17,128 — a 9% return. Enhanced DCA over the same period returned 15%.

Question 4

Is DCA into NGG worth it?

Accepted Answer

Based on a 5-year backtest, DCA into NGG returned 12% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 18% over the same period — a 6% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into NGG for 5 years would result in approximately 382 shares with a standard DCA approach (avg entry $68). Enhanced DCA targeting dips results in 481 shares at an average entry of $65.

Question 6

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

Accepted Answer

Enhanced DCA into NGG returned 18% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. NGG's performance reflects its volatility as a utilities asset. Enhanced DCA outperformed standard DCA by 6%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into NGG?

Accepted Answer

Past backtest performance does not guarantee future results. NGG is a utilities 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 National Grid plc dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into NGG 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 6% higher returns than standard DCA while deploying more total capital into NGG.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	-6%	-3%	+3%
3-Year	9%	15%	+6%
5-Year	12%	18%	+6%

NGG DCA Backtest — Dollar Cost Averaging Results

NGG DCA Results: Key Findings

Alpha you missed while unsubscribed

Dollar cost averaging into NGG — backtest results

Buying the dips for National Grid plc