Hugo Investing

Strategy: Lower the cost price of your ETF’s and shares


Hugo highly recommends you invest with a predefined strategy. However, it’s not always necessary to define your actual trades from the start. Ask yourself, “Can you accept having a minor position if you have a chance to a considerably lower cost price for your shares and ETFs?

  • Goal of Strategy: 
  • Difficulty level: 
  • Activity of Strategy:
  • Time Horizon: 
  • Products: 

Lower cost price
Medium term
ETF and shares

Click here to download your copy of the calculation model


This strategy could help you achieve a lower average cost price using several entry points instead of buying the entire position. Investors and traders that want to open a new position could consider dividing the planned amount into 2,3 or more parts. The goal will be to have a lower historical price if the price falls (first). If your investment does not go down but rises instead,  you will earn less than having invested all from the start. Each Investor should decide for themself: does this possible opportunity loss compensate for the possibility of a possible lower entry-level.

So how does it work:

The first step would be to open the first part directly (market order). You may decide to use a limit order; however, there is a risk that your order will not be executed.

The second step would be to place a limit order. For example, with a limit of 10% under the last traded price, the order can be placed as GTC (good to cancel) or with a determined end date.

The third part is a bit more complicated. It requires knowledge about options and the risks involved by selling the number of the put options needed to fill the last order, using a strike price 20% lower than the first order. The lower cost and the received premium lead to a historical price for that part 25% under the first price of the ETF/share.


The information on investment products is for general information and is not intended as advice. In spite of the fact that Hugo Investing takes care of the compilation and maintenance of these pages using sources deemed reliable, Hugo Investing cannot guarantee the accuracy, completeness, and actuality of the information provided. If you use the information provided without verification or advice, you do so at your own account and risk. We advise you to always check any transactions and not to invest in financial instruments that you do not understand the risks. No rights can be derived from the information on these pages.

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