Current ahr999 indicator:
Theoretical DCA range:0.45-1.2
Data Updated: --
Indicator Description
Indicator Meaning
AHR999 Bitcoin DCA Index:
This indicator was created by Weibo user ahr999 to assist Bitcoin DCA users in making investment decisions with timing strategies. It implies the short-term DCA return rate and the deviation of Bitcoin price from expected valuation. In the long term, Bitcoin price shows a certain positive correlation with block height. With the advantage of dollar-cost averaging, users can control short-term DCA costs to be mostly below the Bitcoin price.
Data Description
When the Bitcoin price is simultaneously below the short-term DCA cost and expected valuation, increasing the investment amount can increase the probability of user returns.
According to backtesting, when the ahr999 indicator data is below 0.45, it may be suitable for bottom-fishing. Between 0.45 and 1.2, it may be suitable for DCA into BTC. Above this range indicates it may not be a good DCA opportunity.
Formula
ahr999 = (Bitcoin Price / 200-Day DCA Cost) * (Bitcoin Price / Exponential Growth Valuation)
According to the original author's detailed explanation of this indicator:
• Exponential Growth Valuation = 10^[5.84 * log(Coin Age) - 17.01]
• Coin Age = Days from January 3, 2009 to the current date