Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into TPB for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $41,568, a return of 59%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $44,273 and grew to $83,353 — a 88% return.

Question 2

What is the best DCA strategy for TPB?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when TPB is overextended — outperformed standard weekly DCA by 29% over 5 years. The enhanced strategy achieved a 88% return vs 59% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into TPB for 3 years (157 purchases, $15,700 total) would have grown to $18,533 — a 18% return. Enhanced DCA over the same period returned 19%.

Question 4

Is DCA into TPB worth it?

Accepted Answer

Based on a 5-year backtest, DCA into TPB returned 59% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 88% over the same period — a 29% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into TPB for 5 years would result in approximately 724 shares with a standard DCA approach (avg entry $36). Enhanced DCA targeting dips results in 1453 shares at an average entry of $30.

Question 6

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

Accepted Answer

Enhanced DCA into TPB returned 88% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. TPB's performance reflects its volatility as a consumer staples asset. Enhanced DCA outperformed standard DCA by 29%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into TPB?

Accepted Answer

Past backtest performance does not guarantee future results. TPB is a consumer staples 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 Turning Point Brands, Inc. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into TPB 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 29% higher returns than standard DCA while deploying more total capital into TPB.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	-36%	-25%	+10%
3-Year	18%	19%	+1%
5-Year	59%	88%	+29%

TPB DCA Backtest — Dollar Cost Averaging Results

TPB DCA Results: Key Findings

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Dollar cost averaging into TPB — backtest results

Buying the dips for Turning Point Brands, Inc.