Buy Every Dip? How Pro Hodlers Blend Surgical Dca With Rules-based...
Pros don’t “ape the dip” on gut feel; they predefine their allocation, let rules-based systems do the buying and use DCA-style flows as part of a disciplined, data-driven execution plan.
“Buy every dip.” That’s the advice from Strike CEO Jack Mallers. According to Mallers, with quantitative tightening over and rate cuts and stimulus on the horizon, the great print is coming. The US can’t afford falling asset prices, he argues, which translates into a giant wall of liquidity ready to muscle in and prop prices up.
While retail has latched onto terms like “buy the dip” and “dollar-cost averaging” (DCA) for buying at market lows or making regular purchases, these are really concepts borrowed from the pros like Samar Sen, the senior vice president and head of APAC at Talos, an institutional digital asset trading platform.
He says that institutional traders have used these terms for decades to manage their entry points into the market and build exposure gradually, while avoiding emotional decision-making in volatile markets.
Related: Cryptocurrency investment: The ultimate indicators for crypto trading
Treasury companies like Strategy and BitMine have become poster children for institutions buying the dip and dollar-cost averaging (DCA) at scale, steadfastly vacuuming up coins every chance they get.
Strategy stacked another 130 Bitcoin (BTC) on Monday, while the insatiable Tom Lee scooped up $150 million of Ether (ETH) on Thursday, prompting Arkham to post, “Tom Lee is DCAing ETH.”
But while it may look like the smart money is glued to the screen reacting to every market downturn, the reality is quite different.
Institutions don’t use the retail vocabulary, Samar explains, but the underlying ideas of disciplined accumulation, opportunistic rebalancing and staying insulated from short-term noise are very much present in how they engage with assets like Bitcoin.
The core difference, he points out, is in how they execute those ideas. While retail investors are prone to react to headlines and price charts, institutional desks rely on “structured, rules-based and quant systematic frameworks.”
Source: CoinTelegraph
