[SmooL]

Doesn't this completely miss the point? DCA is about reducing volatility, not maximizing return. Your expected value is higher without DCA, but it's not about the expected value - it's about tightening the stddev of possible outcomes. "A bird in the hand is worth two in the bush".

[wrs]

It doesn’t exactly miss the point, but it does kind of blow past it and quickly dismiss it. There is a graph showing exactly this, and he even says “reduction of the risk comes at a price” — as it always does.

[toast0]

DCA is really about managing behavior rather than volatility or return. It's hard for many people to put a lump sum in the market, even if they agree it's the right thing to do. It's behaviorally easier to put X% in today and the rest on a schedule than to make the decision to put the lump sum in today. It's better to start the process than to waffle on if today is the day or not.