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DCA Efficient Frontier

A Monte Carlo study of dollar-cost-averaging strategies over 1980–2026. It puts 56 portfolios (static allocations, age-based glides, and momentum/signal overlays) through a block-bootstrap Monte Carlo in a fully taxable and a fully tax-free account, and ranks them on median final wealth versus terminal pain (the 10th-percentile drawdown over the final five years before retirement).

The full write-up is wealth_report.pdf.

Build

Run from inside this folder:

python3 make_report.py             # full pipeline -> wealth_report.pdf
python3 make_report.py --no-fetch  # reuse the committed data (skip the network fetch)
python3 make_report.py --skip-mc   # reuse the existing results/ (skip the ~40-min Monte Carlo)
python3 make_report.py --seed-check # second-seed robustness run (seed 7), separate ~40-min Monte Carlo

The report rests its conclusions on the strategies that stay efficient under a second random seed. --seed-check reproduces that: it re-runs the full Monte Carlo under seed 7 and prints the seed-7 efficient sets to compare against the seed-42 sets in results/eff_taxable.tex / eff_taxfree.tex. It is off by default because it is a second ~40-minute run.

The pipeline fetches the fund data, builds the 1980 dataset, runs the Monte Carlo, generates the tables and figures into results/, and compiles the report. dca_files_readme.md is the file map.

Disclaimer

This is a backtest and thought experiment, not financial advice. See the disclaimer in the report. It relies on AI-written code and public data (Yahoo Finance, the LBMA gold benchmark, the FTSE Nareit index); reproduce any figure before relying on it.

About

Monte Carlo study of dollar-cost-averaging strategies, 1980–2026. Ranks 56 portfolios (static, age-glide, momentum/signal) by median final wealth vs. terminal drawdown pain via block-bootstrap simulation in taxable and tax-free accounts. Full write-up in wealth_report.pdf.

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