Tactical Strategy

Trigger DCA: How to Automatically "Buy the Dip"

Want to invest more money only when the stock market is bleeding? A Trigger DCA allows you to set rules for when your money gets invested.

1. What is a Trigger DCA?

Instead of investing on a fixed date (like the 5th of every month), a Trigger DCA executes an investment only when a certain condition is met.

For example: "Invest $500 every time the S&P 500 drops by 2%."

2. Pros and Cons

Pros

Guarantees that you buy units at a cheaper NAV, potentially boosting your long-term returns compared to a blind monthly DCA.

Cons

In a raging bull market, your trigger might not hit for months, leaving your cash sitting idle in a bank account while the market rallies without you.