How to Build a Smart DCA Strategy in 2026

Dollar Cost Averaging (DCA) remains one of the most effective strategies for investing with peace of mind. Here's my experience report after 3 years of practice.

The Multi-Pocket Framework

I've structured my DCA into three distinct pockets:

1. Tax-Advantaged (401k, IRA)

World ETF: $200/month
Focus: Long term (10+ years)

2. Brokerage (Individual Stocks & Dividends)

Individual stocks: $150/month
Focus: Passive income

3. Crypto

BTC + ETH: $50/month
Focus: Diversification

The Rules of the Game

Total automation: Scheduled transfers on the 1st of each month
No timing: Buy no matter what
Annual rebalancing: Once a year maximum
Minimal fees: < 0.5% management fees

My Results After 3 Years

Average performance: +12% annualized
Time spent: < 1h/month
Stress: Almost none

DCA is accepting that you won't beat the markets, but you'll follow them peacefully.