Learning resource
Glossary
Definitions for DCA, sequence risk, contribution timing risk, and market regime terminology.
Updated
In short
A reference dictionary for DCA Risk Lab concepts so investors can interpret simulation outputs consistently.
What you will learn
- Clarifies core terms such as sequence risk and contribution timing risk.
- Improves consistency when comparing scenarios and discussing results.
- Reduces interpretation errors from ambiguous financial terminology.
Full resource
Core DCA terms
Dollar-Cost Averaging is a policy of investing fixed amounts at predefined intervals. The key value is process consistency rather than tactical prediction.
Contribution timing risk refers to the uncertainty introduced by when cash is deployed. Different schedules can produce different entry distributions and outcomes.
Risk language used in the platform
Sequence risk is the impact of return order on outcomes. Drawdown is the peak-to-trough decline, and recovery time is how long it takes to return to the previous peak.
Outcome dispersion describes the spread of results across test windows. High dispersion signals policy sensitivity to timing and regime conditions.
How to use the glossary
Use terms consistently when comparing scenarios. A stable vocabulary improves interpretation quality and reduces communication errors in decision review.
Treat the glossary as the reference baseline for methodology pages and blog analysis.
Next steps
Apply this resource alongside simulation analysis. Start from the home workflow, validate assumptions in methodology, and use related blog posts to deepen context before changing contribution policy.