BCH Short Strategy Fading Overbought RSI with DCA Orders
Summary
This short-only strategy for BCH uses a 5-minute RSI with a length of 9. It opens a short when RSI crosses down through 80, then may add up to three averaging orders as price rises above the base entry. The default add levels are spaced at 1%, 2%, and 3% above that entry, with each add using the same stated USDT size. The exit logic uses a hard stop 8% above the average entry and a take-profit threshold 1.3% below it, followed by a 0.3% trailing retracement. A date window, position sizing, fees, slippage, and webhook alerts are configurable.
The supplied material explains mechanics and defaults but presents no performance report or evidence of profitability. The averaging orders increase exposure as price moves against the short, so the stop and sizing assumptions matter. The script uses close-based checks for stop and trailing exits, and limit entry fills may differ from the modeled signal. Defaults are described for a specific BCH perpetual market; they are not validated for other symbols or periods.
Key ideas
- A short opens when the 5-minute RSI crosses down through the overbought level of 80.
- Up to three averaging orders can be placed at cumulative price deviations above the base entry.
- The strategy targets a move below average entry and trails after reaching its take-profit threshold.
- A hard stop is set above average entry, while order sizes and execution assumptions are configurable.
- No backtest results are supplied, and the averaging process adds exposure during adverse price movement.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.