BTC RSI Dollar-Cost Averaging with Fixed Safety Orders

Summary

This long-only Bitcoin strategy uses a 14-period RSI on a four-hour timeframe to arm entries when RSI falls below 38. It adds up to five safety orders at fixed price declines from the base entry, with each order sized about 1.8 times larger than the previous one. A fixed take-profit target of 5.5% above average entry closes the position; there is no stop loss or trailing exit.

The document gives a capital exposure estimate of about $20,633 when all five additions fill, on a $100,000 account, and describes the ladder as capped after its final order. It says the RSI threshold and profit target were optimizer-tuned, but provides no backtest performance evidence in the excerpt. The design is therefore exposed to deep or prolonged declines: the bounded ladder can be exhausted while the position remains open, and the increasing order sizes concentrate exposure at lower prices. Settings are calibrated for a specific Bitcoin perpetual market and four-hour chart, so results may differ elsewhere.

Key ideas

• The entry filter arms a long when four-hour RSI(14) is below 38.
• Five safety orders add exposure at fixed declines of 2%, 5%, 9.5%, 16%, and 25% from the base entry.
• Order sizes increase by roughly 1.8 times at each rung.
• The strategy takes profit 5.5% above average entry and has no stop loss or trailing exit.
• The maximum planned deployment is about $20,633 on a $100,000 account when every safety order fills.

Tags

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