What is a dynamic recurring investment?

A dynamic recurring investment is a new strategy added to the existing recurring investment feature. A dynamic recurring investment is an automatic strategy that could potentially save costs and maximize profits through dollar cost averaging. In general, when the market price declines, more shares will be purchased. When the market price is high, fewer shares will be purchased.

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How does a dynamic recurring investment work?

Instead of investing a fixed amount in a specific asset regularly, a dynamic recurring investment adjusts the set amount automatically each time before investing. In order to make this strategy work, investors need to set a benchmark to track. This could be the asset itself or an index.

The adjustment is made by comparing the previous closing price of the benchmark to its moving average value. If the price is below the moving average (meaning the current price is lower than its average over a period), the investment amount would be higher than the set amount. If the price is above the moving average, the investment amount would be lower than the set amount.

However, the investment amount is always kept within 50%-200% of your set amount.👇

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How do you get started?

First, update your Webull App to the latest version. Find a stock/ETF that you’d like to invest in. Go to the details page and hit the Recurring Investment button.

Just like a regular recurring investment, you need to enter how much and how often you want to invest. 

Choose ‘Dynamic Amount’ and select the benchmark you want to track and the length of moving average you want to use.

If you’re investing in a stock, you’d probably want to track its historical price or an index that it’s included in. If you’re investing in an ETF, you’d probably want to track the index that the ETF tracks or another broader index reflecting market movements.

Depending on your investment horizon and your investment interval, you may choose a 120-day, 250-day, or 300-day moving average.

You’ll receive a push alert of the investment amount one day before the scheduled investment. You’ll be able to modify or cancel your recurring investment schedule any time.

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What are you waiting for? Go to your watchlist and get started!