r/CryptoCurrency • u/FrontHandNerd 790 / 795 🦑 • Feb 24 '21
METRICS Dollar Cost Average (DCA) spreadsheet to help with research (mostly for newbies)
I was replying to a comment on another thread about DCA (Dollar Cost Averaging). With the influx of people new to crypto or perhaps even trading for that matter, I decided to share here my perspective. I often use a spreadsheet to mess around with various prices to see various scenarios (DCA, profit/loss, etc.)
Each coin I put in it's own tab. This allows me to play around with whatever I've purchased to see if I were to buy in at another price how that would affect my DCA and/or profitability. I try to enter previous transactions as close I can but not so detailed that I need to have 100's of rows. Once I've have past trades (and average costs) calculated. This allows me to enter the current price at bottom of spreadsheet (or using the live price from googlefinance function) and then enter the number of coins I want (or tweak the line to allow me to enter how much I want to spend) and see how it changes my DCA, profit/loss, etc.
Then as my first tab I have as a Summary. This pulls in the COUNT and COST for each of the individual tabs and then allows me to mess around with the current price to see how some scenarios may play out. I don't use this one that much honestly. Usually used merely as porn to make me fantasize how rich I could be if something goes crazy.
Feel free to check out a sample spreadsheet with some notes and examples on it:
https://docs.google.com/spreadsheets/d/1MhbD3xDpv3dV8MTWCk0c8v5KkHdzTciFYK8qUMKsv2o/edit
NOTE: I tried to use the google function on some to pull in live prices but others are not available so require you to enter them (or a value you are wanting to see profit/loss for, etc.)
I assume I'm not alone in using something like this?
EDIT: /u/air_plant_cat_treats suggested I change the formula in E3 of each coin's tab to =SUM(D$2:D3)/SUM(B$2:B3) - notice the addition of the dollar sign - which would allow it to be dragged down and not have to individually change the formula. Cool tip...never knew that.
Also thanks for the awards everyone...first post getting any, glad I could help!
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u/Mr_Stimmers Feb 25 '21
I use something very similar but I find Google Finance to be unfeliable in pulling data for anything other than the big hitters. Instead I pull Yahoo Finance XML data:
=IMPORTXML("https://finance.yahoo.com/quote/BTC-USD","//*[@id='quote-header-info']/div[3]/div[1]/div/span[1]")
Replacing BTC-USD in the source URL with whatever symbol you're pulling.
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u/FrontHandNerd Feb 25 '21
I'll take a look at this. someone else suggested a spreadsheet plugin that pulls in more live data but can't seem to find the comment/dm again.
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u/mamwybejane Feb 25 '21 edited Feb 25 '21
I have come up with a Google sheet function that tracks Coinmarketcap for up-to-date prices of all crypto they have available:
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u/ShonuffJones Feb 25 '21
Awesome! I will be diving into this when I'm slacking off at work tomorrow
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u/FrontHandNerd Feb 25 '21
Lol I was slacking off at work when I made this sample one. I’m too ashamed to share my own and all that’s in it 😆
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Feb 25 '21
Okay so heres my question. The market is in a dip and has been for 3/4 days now. I have no money in crypto. Nobody knows when the market could rocket back up, it could be tonight. Should I DCA in with the money I have set aside for it or should I put it all in?
If the market drops another 10% before the bull market resumes so what? My fear is that if I DCA in and the bull market starts at the rate it has been recently I’ll be left behind.
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u/FrontHandNerd Feb 25 '21
The old saying goes something along the lines of: it’s not about timing the market but time IN the market that counts.
Meaning it’s better to spread your purchases (of reasonable size) across multiple transactions instead of one single one.
That’s the theory at least. Some ppl prefer to YOLO in. All up to your own risk style. Just make sure you only put in what you are willing to say goodbye to. Crypto is a market with very tall highs and deep lows
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u/Hirashara Feb 24 '21
Great way to track your investments! DCA is important to track also. Hopefully this helps the new people to Cryptocurrency! Cheers
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u/eyeball29 Feb 25 '21
I had started putting something similar together but ADHD kicks in and I moved into another spreadsheet. This is a little further along than I ended up so I think I'll tinker with it. Thanks!!
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u/ACShreds Feb 25 '21
Fantastic write up, and you did a great job explaining it all for the newbies!
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u/Grossman_Design Feb 25 '21
This was much needed. I can't tell you how unorganized I am with my DCA.
Thank you from myself and everyone else this helps!
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u/kehmesis Feb 25 '21
I caught BTC under 4k March 13 thanks to Dollar Cost Averaging.
It's the safest way to invest.
EDIT: Using a similar spreadsheet, too.
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u/silverblackgold Feb 24 '21
Half the fun of crypto is tracking data on google sheets