BTC RSI Mean Reversion with a Fixed DCA Ladder

Summary

This BTC long-only strategy uses a low RSI reading on a four-hour timeframe to arm an entry, then averages into the position through five fixed price-deviation orders. Each successive order is larger, with sizing scaled from the base order. The strategy takes profit at a fixed percentage above average entry and uses no trailing exit. Its parameters include the RSI timeframe and threshold, base size, order deviations and sizes, and a date filter. The script is calibrated for a BTC perpetual contract and includes trading cost assumptions.

The document describes the maximum capital committed if the full ladder fills and explains that the ladder bounds further additions, but there is no stop loss. Thus, the position can remain exposed through a deep decline, and averaging down increases the amount at risk as price falls. The excerpt provides rules and settings rather than backtest performance evidence. Results may vary with market behavior, execution, and the selected inputs; the strategy’s stated calibration does not establish that it generalizes beyond its target market and timeframe.

Key ideas

• A four-hour RSI threshold arms a long entry in BTC.
• Five fixed deviation levels add to the position as price falls, with increasing order sizes.
• The strategy closes at a fixed profit target above average entry.
• There is no stop loss, and the full order ladder defines the limit on additions.
• The document provides setup details but no backtest performance results.

Tags

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