gate Research Institute: Auto-Invest financial product backtesting report

The latest release of the Gate Research Institute's "Gate Research Institute: Dollar-Cost Averaging Backtest Report" systemizes the performances of BTC, ETH, SOL, GT, and their combined assets from September 2021 to December 2024, comparing the performances of dollar-cost averaging and lump-sum investment strategies. The report quantitatively analyzes and compares the returns, drawdown performances, and investment adaptability of different strategies in different market cycles, providing investors with a comprehensive strategy evaluation framework and empirical data support.

Summary of key points:

• Dollar-cost averaging strategy and business logic: Dollar-cost averaging strategy involves periodic purchases to diversify price fluctuation risks and avoid timing difficulties. It is particularly suitable for ordinary investors in high-volatility markets, demonstrating stable advantages in long-term investment.
• Single currency performance and backtesting results: SOL has the best performance in fixed investment, with a long-term ROI of over 375%. BTC has steady growth, with an ROI of about 182%, ETH about 61%, GT has greater volatility but long-term returns exceed 200%, reflecting platform ecosystem dividends.
• Strategy comparison and cycle adaptation: Dollar-cost averaging is generally superior to lump-sum investment, especially in bear markets or volatile markets. In the early stages of a bottom or reversal, lump-sum investment has greater elasticity. The difference in returns between daily, weekly, and monthly dollar-cost averaging is not significant, and weekly dollar-cost averaging balances convenience with risk-return ratio.
• Portfolio Effect and Asset Allocation: An equal-weight portfolio of BTC, ETH, GT effectively reduces drawdowns and stabilizes returns. Adjusting the allocation ratio (BTC 50%, ETH 25%, GT 25%) can further control downside risks and slightly increase returns.
• Market cycle performance and strategy adaptability: The differences between various strategies in the bull market are small, the advantages of fixed investment are prominent in the bear market, one-time buy-in at the bottom has strong elasticity, and both fixed investment and portfolio strategies yield stable returns during the recovery period.
• Long-term strategy advice and operational guidance: Dollar-cost averaging combined with portfolio investment is suitable for most investors, balancing risk and return. Those with strong market-timing abilities can consider one-time bottom buying. During the execution process, dynamic rebalancing is needed, along with setting stop-loss and take-profit levels based on market conditions.

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Gate.io March 6, 2025