Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into ORC for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $14,805, a return of -43%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $57,835 and grew to $32,400 — a -44% return.

Question 2

What is the best DCA strategy for ORC?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when ORC is overextended — underperformed standard weekly DCA by 1% over 5 years. The enhanced strategy achieved a -44% return vs -43% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into ORC for 3 years (157 purchases, $15,700 total) would have grown to $10,656 — a -32% return. Enhanced DCA over the same period returned -29%.

Question 4

Is DCA into ORC worth it?

Accepted Answer

Based on a 5-year backtest, DCA into ORC returned -43% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned -44% over the same period — a 1% shortfall in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into ORC for 5 years would result in approximately 2914 shares with a standard DCA approach (avg entry $9). Enhanced DCA targeting dips results in 6378 shares at an average entry of $9.

Question 6

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

Accepted Answer

Enhanced DCA into ORC returned -44% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. ORC's performance reflects its volatility as a real estate asset. Enhanced DCA underperformed standard DCA by 1% over this period, showing signal-based timing doesn't always beat regular-interval buying.

Question 7

What is the risk of dollar cost averaging into ORC?

Accepted Answer

Past backtest performance does not guarantee future results. ORC is a real estate 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 Orchid Island Capital, Inc. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into ORC 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 1% lower returns than standard DCA while deploying more total capital into ORC.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	-27%	-23%	+4%
3-Year	-32%	-29%	+4%
5-Year	-43%	-44%	-1%

ORC DCA Backtest — Dollar Cost Averaging Results

ORC DCA Results: Key Findings

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Dollar cost averaging into ORC — backtest results

Buying the dips for Orchid Island Capital, Inc.