Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into WHD for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $34,586, a return of 33%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $36,971 and grew to $55,387 — a 50% return.

Question 2

What is the best DCA strategy for WHD?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when WHD is overextended — outperformed standard weekly DCA by 17% over 5 years. The enhanced strategy achieved a 50% return vs 33% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into WHD for 3 years (157 purchases, $15,700 total) would have grown to $19,972 — a 27% return. Enhanced DCA over the same period returned 45%.

Question 4

Is DCA into WHD worth it?

Accepted Answer

Based on a 5-year backtest, DCA into WHD returned 33% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 50% over the same period — a 17% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into WHD for 5 years would result in approximately 545 shares with a standard DCA approach (avg entry $48). Enhanced DCA targeting dips results in 873 shares at an average entry of $42.

Question 6

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

Accepted Answer

Enhanced DCA into WHD returned 50% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. WHD's performance reflects its volatility as a energy asset. Enhanced DCA outperformed standard DCA by 17%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into WHD?

Accepted Answer

Past backtest performance does not guarantee future results. WHD 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 Cactus, Inc. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into WHD 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 17% higher returns than standard DCA while deploying more total capital into WHD.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	21%	42%	+21%
3-Year	27%	45%	+17%
5-Year	33%	50%	+17%

WHD DCA Backtest — Dollar Cost Averaging Results

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Dollar cost averaging into WHD — backtest results

Buying the dips for Cactus, Inc.