Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into PAGS for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $27,898, a return of 7%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $65,927 and grew to $72,542 — a 10% return.

Question 2

What is the best DCA strategy for PAGS?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when PAGS is overextended — outperformed standard weekly DCA by 3% over 5 years. The enhanced strategy achieved a 10% return vs 7% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into PAGS for 3 years (157 purchases, $15,700 total) would have grown to $18,400 — a 17% return. Enhanced DCA over the same period returned 30%.

Question 4

Is DCA into PAGS worth it?

Accepted Answer

Based on a 5-year backtest, DCA into PAGS returned 7% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 10% over the same period — a 3% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into PAGS for 5 years would result in approximately 2500 shares with a standard DCA approach (avg entry $10). Enhanced DCA targeting dips results in 6500 shares at an average entry of $10.

Question 6

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

Accepted Answer

Enhanced DCA into PAGS returned 10% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. PAGS's performance reflects its volatility as a technology asset. Enhanced DCA outperformed standard DCA by 3%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into PAGS?

Accepted Answer

Past backtest performance does not guarantee future results. PAGS 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 PagSeguro Digital Ltd. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into PAGS 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 3% higher returns than standard DCA while deploying more total capital into PAGS.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	15%	21%	+6%
3-Year	17%	30%	+13%
5-Year	7%	10%	+3%

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Dollar cost averaging into PAGS — backtest results

Buying the dips for PagSeguro Digital Ltd.