Value Averaging Bitcoin Purchases at Fixed Intervals

Summary

This account-balance-based strategy aims to build a Bitcoin position toward a rising target value over time. It divides a planned monthly contribution by the number of scheduled investment intervals to define target value growth per interval. At each check, it compares the target portfolio value with the current value of accumulated Bitcoin; it buys when below target and sells when above it. A worked four-period example illustrates that purchases vary with price and that the strategy can sell after an asset-value increase.

The implementation derives holdings and cash changes from the account’s balance relative to its starting state, with manual records for deposits or withdrawals. The document cautions against sharing the account with other bots or making unrecorded manual trades, since those changes distort calculations. It describes an intended long-term Bitcoin approach, not a return-tested system, and provides no evidence that it outperforms fixed-amount investing. Exchange minimums, available cash or coin, and assumed execution slippage can also limit whether a calculated adjustment is placed.

Key ideas

• The strategy sets a target portfolio value that increases by a planned amount each interval.
• It buys when holdings fall short of the target and sells when they exceed it.
• The worked example shows how the same rule can change from buying to selling as price changes.
• Account deposits, withdrawals, or outside trades must be tracked to keep the balance comparison accurate.
• The document describes mechanics but gives no comparative performance results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.