Dollar Cost Averaging Strategy Explained using Python Backtesting

Have you ever stopped to think about what Dollar Cost Averaging means and more importantly why it is a well-known and highly regarded strategy?

Today we learn how to use one of Python’s financial backtesting modules called Backtrader to evaluate the Dollar Cost Averaging Strategy for a Vanguard S&P500 ETF called VTS. We compare this strategy to the buy and hold strategy over different time horizons.

00:00 Intro
03:10 Importing the data
07:28 Buy & Hold - Lump-sum Strategy
17:15 Running Backtrader with Cerebro
19:15 Backtrader Commission Schemes
25:30 Buy & Buy More - Dollar Cost Averaging Strategy
38:30 Orders & Trade Details
45:10 Lump-sum vs Dollar Cost Averaging
46:55 Your Equity Curve - why Dollar Cost Averaging makes sense?
52:00 Risks of an ETF?

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