Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into TER for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $87,507, a return of 235%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $36,153 and grew to $149,520 — a 314% return.

Question 2

What is the best DCA strategy for TER?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when TER is overextended — outperformed standard weekly DCA by 78% over 5 years. The enhanced strategy achieved a 314% return vs 235% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into TER for 3 years (157 purchases, $15,700 total) would have grown to $47,164 — a 200% return. Enhanced DCA over the same period returned 301%.

Question 4

Is DCA into TER worth it?

Accepted Answer

Based on a 5-year backtest, DCA into TER returned 235% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 314% over the same period — a 78% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into TER for 5 years would result in approximately 217 shares with a standard DCA approach (avg entry $120). Enhanced DCA targeting dips results in 371 shares at an average entry of $97.

Question 6

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

Accepted Answer

Enhanced DCA into TER returned 314% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. TER's performance reflects its volatility as a technology asset. Enhanced DCA outperformed standard DCA by 78%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into TER?

Accepted Answer

Past backtest performance does not guarantee future results. TER 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 Teradyne dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into TER 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 78% higher returns than standard DCA while deploying more total capital into TER.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	47%	19%	-28%
3-Year	200%	301%	+100%
5-Year	235%	314%	+78%

TER DCA Backtest — Dollar Cost Averaging Results

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Dollar cost averaging into TER — backtest results

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