TERMINAL
Back to articles

How to Build a Smart DCA Strategy in 2026

EJ
Esnault Julien
·
6 min read
·
Product UpdatesInvestingDCAStrategy

How to Build a Smart DCA Strategy in 2026

Dollar Cost Averaging (DCA) remains one of the most effective strategies for investing with peace of mind. Here's my experience report after 3 years of practice.

The Multi-Pocket Framework

I've structured my DCA into three distinct pockets:

1. Tax-Advantaged (401k, IRA)

  • World ETF: $200/month
  • Focus: Long term (10+ years)

    • 2. Brokerage (Individual Stocks & Dividends)

  • Individual stocks: $150/month
  • Focus: Passive income

    • 3. Crypto

  • BTC + ETH: $50/month
  • Focus: Diversification

    • The Rules of the Game

  • Total automation: Scheduled transfers on the 1st of each month
  • No timing: Buy no matter what
  • Annual rebalancing: Once a year maximum
  • Minimal fees: < 0.5% management fees

    • My Results After 3 Years

  • Average performance: +12% annualized
  • Time spent: < 1h/month
  • Stress: Almost none

    • DCA is accepting that you won't beat the markets, but you'll follow them peacefully.

    Analyze your stocks now

    Portfolio Terminal gives you access to 443 stock analyses with real-time metrics.

    Explore Stock AnalysesOpen Terminal
    Portfolio Terminal - Track & Analyze Your Investments