Did some backtesting on what if we only buy when the market dips

[plmokn9821]

@cclay88 What if we go with SIP and buy more (lumpsum) during dips of 20%. Any possibility of back testing this?

 

[yaheli]

@cclay88 Amazing post . Learnt a lot !

 

[cclay88]

@yaheli Thank you

 

[philcho]

@cclay88

The takeaway is - that buying the dips is a solid investing strategy. To the point, it goes toe-to-toe with SIP. That's what this backtesting reveals.

Except you wont know where the bottom is SIP is always better if you cant lumpsum it.

 

[soaring]

@cclay88 Can you make a comparison of step-up SIP and regular SIP?

 

[cclay88]

@soaring This is a step up SIP. SIP amount is increased by 5% every year.

You can play around with the Google sheet attached. Make the increase 0%, you will have the regular SIP. Also, you can read the methodology in the substack article attached. Shameless plug - subscribe if you like it pls

 

[soaring]

@cclay88 Woah! Thanks a lot!