Bitcoin RSI-Triggered DCA with Fixed Add Levels and Take Profit

Summary

This long-only Bitcoin strategy opens a base position when a 14-period RSI on the four-hour timeframe falls below a configurable threshold. If price declines farther from the base entry, it adds up to five orders at fixed percentage levels measured from that original entry. The add sizes rise by a stated 1.8 scaling factor, creating a predefined dollar exposure ladder. A date filter, optional limit entry, and configurable order sizes are included.

The position closes when price reaches a fixed percentage above its average entry. There is no stop loss or trailing exit, and the add ladder ends after the fifth order, leaving the position exposed if price keeps falling. The author says the RSI and take-profit defaults were optimizer-tuned and gives example capital requirements, but no backtest results or optimization methodology are included. The script is calibrated for a named Bitcoin perpetual market and four-hour chart, so its settings should not be assumed to transfer to other instruments or conditions.

Key ideas

• A four-hour RSI threshold arms a long base order when Bitcoin is oversold by the chosen rule.
• Five additional orders trigger at fixed declines measured from the base entry, with progressively larger sizes.
• The entire position exits at a fixed gain above its current average entry price.
• There is no stop loss, so the finite add ladder does not cap downside exposure if the market continues lower.
• The document states that defaults were optimizer-tuned but provides no performance results or tuning details.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.