DescriptionDollar cost averaging against value averaging.png
English: The end value after a 36-month market-entry period for 1$ in the SP500, using alternatively value averaging (VA) and dollar cost averaging (DCA). Each point is a different starting month between January 1871 and December 2014. The red points are those for which the investor using value averaging finishes the market-entry period with less than nothing. In other words, the investor has lost 100% of the money and has contracted debts. Here the yearly expected rate of return is zero. See below for a version with a yearly ERR of 4.35%.
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