DCA Schedule vs Rebalancing Threshold
**DCA** buys on a calendar—smooths entry, ignores drift. **Threshold rebalancing** trades when allocations drift X%—controls risk but triggers variable trades and gas.
Step by step
1. Define target weights
60/40 BTC/ETH example—write targets before price moves.
2. Pick band
5% drift common—tighter bands = more trades.
3. Add gas to rebalance
On-chain rebalancing needs fee budget per adjustment.
DCA vs rebalance
Many use DCA to build position + quarterly rebalance for risk.
- DCA: Time-based; behavioral ease.
- Threshold rebalance: Risk-focused; lumpy trades.
Use our calculators
Common mistakes
- Rebalancing too often on L1
- No target allocation written down
FAQ
Can DCA replace rebalancing?
No—DCA does not restore target weights as prices diverge.