Instead of VA ( Value Average ) let me first explain what is DCA (Dollar-Cost Averaging), In a volatile market, timing investments at the perfect peak or bottom is one of the most challenging aspects of asset management. Rather than risking a large sum in a single transaction, which could mean buying near the peak, DCA allows investors to spread their investments over time.

With DCA, you might set a daily buy amount, so your portfolio grows steadily. However, DCA has a limitation it buys the same amount of an asset whether prices are high or low. This lack of flexibility is where VA provides an advantage. VA is smarter about timing and adjusting how much of amount to invest based on market.

What is VA ?

Value average (VA) is a strategy that works like dollar-cost averaging (DCA). It works similarly by making contributions in a consistent time period but differs by the amount of each contribution. DCA focuses on equal investments while VA focuses on equal growth of the portfolio instead of equal investments.

Value Average (VA) provides a systematic approach to accumulating investments over time. VA not only helps to smooth out the overall cost but also adjusts the investment amount based on market performance, potentially lowering the cost basis and enhancing long-term profitability.

How VA works ?

As you know VA focuses on equal growth of the portfolio. So, When you create a VA order, your tokens will be transferred from your wallet to a program owned associated token account.

Let’s take an example, Suppose you choose to use USDC to VA into JUP, the entire specified USDC amount will be deposited into your VA vault. After the token is deposited into the VA vault it will immediately places the first order and remaining orders will take place regularly at your selected time interval.

After VA order you will receive purchased tokens in your wallet within the same transaction of each order. So, when you create order by default Jupiter VA opens the necessary associated token account (ATA) for your wallet. If you manually close the Associated Token Account (ATA) for your purchased SPL tokens, you won't receive automatic transfers for each order. Instead, all your tokens will be consolidated and transferred to your wallet as a single lump sum at the end of your VA period. For SOL, Jupiter manages the account automatically, so you don’t need to worry about this issue.

How VA is better than DCA ?

Dollar Cost Averaging (DCA) involves consistent, regular investments, regardless of market conditions or volatility. This approach, can sometimes lead to suboptimal outcomes during market fluctuations.

For instance, if you set a DCA order when JUP was at $0.60, and the price surged to $0.80 before your order executed, you'd end up buying high. If JUP then dipped to $0.70, your portfolio would reflect an immediate loss. In contrast, Value Average (VA) focuses on achieving equal growth in your portfolio by adjusting investment amounts based on market conditions, which can better protect against such volatility.

This highlights the difference between DCA's fixed schedule and VA's adaptive strategy, making it clearer how VA could offer better resilience in fluctuating markets.

When to do VA ?

Volatile Markets: VA adjusts investments based on price swings, investing more in dips and less in peaks, to capitalize on market volatility.
Long-Term Strategy: VA builds portfolios adaptively, accumulating in bear markets and taking profit in bull markets, avoiding overpaying during market highs.
Splitting Up Large Orders: VA minimizes market impact of large orders, dynamically adjusting trades for better average prices, similar to a TWAP (time-weighted average price) strategy.
Selling Tokens with Low Liquidity: VA reduces selling pressure on low-liquidity tokens, helping relieve losses and potentially improve returns.

Conclusion

Value Average (VA) offers a smarter alternative to Dollar-Cost Averaging (DCA) by focusing on portfolio growth instead of fixed investment amounts. By adjusting to market conditions, VA helps investors better navigate volatility, making it especially useful in uncertain times. Whether you want to take advantage of price changes, manage large orders, or develop a strong long-term strategy, VA provides the flexibility and responsiveness that traditional DCA doesn't.

You can place VA orders directly at Jupiter. For a step-by-step guide on using VA, check out the tutorial here.

Deep dive into VA