Backtested DCA strategy suggests selling Bitcoin at ‘extreme greed’ most profitable

A Redditor suggested selling 5% of one’s Bitcoin during times of “Extreme Greed” produces higher ROI than just HODLing it like everyone else.

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Selling off a portion of Bitcoin (BTC) when the market is in a state of “Extreme Greed” is a more profitable investment strategy than just buying and HODLing it, a Redditor’s analysis suggests.

Redditor “skogsraw” shared a March 21 analysis found that there’s a higher return on investment (ROI) when using the Fear and Greed Index to dictate a dollar-cost averaging (DCA) strategy compared to a “vanilla” DCA strategy.

Skograw’s “benchmark” strategy involved DCA’ing $100 into Bitcoin once a week, starting from March 17, 2018, to Sept. 9, 2023 — which netted 124.8% return on investment. 

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