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Alsadius comments on Why you should consider buying Bitcoin right now (Jan 2015) if you have high risk tolerance - Less Wrong
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Comments (136)
DCA lowers risk, while keeping the same EV. And the most common alternative, trying to time the market, has a long history of miserable failure by virtually all investors.
It's canonical investment advice for a reason.
Ander's claim, which I see repeated a lot, seems to be that it is positive EV rather than neutral. That's the bit that raises my hackles.
For a normal person who's saving money off their paycheque, DCA is superior to saving up a lump sum and investing that. This is true for exactly the same reason that DCA is inferior to a lump sum in the case where you're investing a lump sum - it gets you into the market faster, and stocks outperform cash.