Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into WES for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $37,481, a return of 44%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $19,598 and grew to $29,733 — a 52% return.

Question 2

What is the best DCA strategy for WES?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when WES is overextended — outperformed standard weekly DCA by 8% over 5 years. The enhanced strategy achieved a 52% return vs 44% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into WES for 3 years (157 purchases, $15,700 total) would have grown to $18,893 — a 20% return. Enhanced DCA over the same period returned 23%.

Question 4

Is DCA into WES worth it?

Accepted Answer

Based on a 5-year backtest, DCA into WES returned 44% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 52% over the same period — a 8% gain in return, while deploying a similar or smaller amount of capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into WES for 5 years would result in approximately 822 shares with a standard DCA approach (avg entry $32). Enhanced DCA targeting dips results in 652 shares at an average entry of $30.

Question 6

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

Accepted Answer

Enhanced DCA into WES returned 52% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. WES's performance reflects its volatility as a energy asset. Enhanced DCA outperformed standard DCA by 8%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into WES?

Accepted Answer

Past backtest performance does not guarantee future results. WES is a energy 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 Western Midstream Partners, LP dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into WES 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 8% higher returns than standard DCA while deploying less total capital into WES.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	7%	9%	+2%
3-Year	20%	23%	+3%
5-Year	44%	52%	+8%

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Dollar cost averaging into WES — backtest results

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