Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into WTS for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $47,049, a return of 80%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $29,015 and grew to $63,488 — a 119% return.

Question 2

What is the best DCA strategy for WTS?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when WTS is overextended — outperformed standard weekly DCA by 39% over 5 years. The enhanced strategy achieved a 119% return vs 80% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into WTS for 3 years (157 purchases, $15,700 total) would have grown to $23,514 — a 50% return. Enhanced DCA over the same period returned 70%.

Question 4

Is DCA into WTS worth it?

Accepted Answer

Based on a 5-year backtest, DCA into WTS returned 80% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 119% over the same period — a 39% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into WTS for 5 years would result in approximately 133 shares with a standard DCA approach (avg entry $196). Enhanced DCA targeting dips results in 180 shares at an average entry of $161.

Question 6

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

Accepted Answer

Enhanced DCA into WTS returned 119% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. WTS's performance reflects its volatility as a industrials asset. Enhanced DCA outperformed standard DCA by 39%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into WTS?

Accepted Answer

Past backtest performance does not guarantee future results. WTS is a industrials 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 Watts Water Technologies, Inc. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into WTS 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 39% higher returns than standard DCA while deploying more total capital into WTS.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	13%	21%	+8%
3-Year	50%	70%	+21%
5-Year	80%	119%	+39%

WTS DCA Backtest — Dollar Cost Averaging Results

WTS DCA Results: Key Findings

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Dollar cost averaging into WTS — backtest results

Buying the dips for Watts Water Technologies, Inc.