DOT RSI Reversal Shorts with DCA Entries and Trailing Exits

Summary

This strategy describes a short-only approach for DOT perpetual futures. It opens a base position when a 3-minute RSI with a length of 9 crosses down through 80, treating the move as a possible end to overbought momentum. If price rises after entry, it can add up to three averaging orders at cumulative 1%, 2%, and 3% deviations above the base entry, with equal order sizes by default.

The exit logic uses the position’s average entry price: a trailing exit arms after price moves 1.3% in favor, then closes after a 0.3% rebound from the lowest price reached in that zone. A hard stop closes the position after an 8% adverse move. The script also includes configurable sizing, fees, slippage, date filters, and webhook alerts, but the document provides no performance results. Its defaults are described as calibrated for BYBIT DOTUSDT perpetuals; other markets, timeframes, and execution conditions may behave differently, and averaging into a rising market increases exposure before the stop is reached.

Key ideas

• A short signal occurs when 3-minute RSI(9) crosses down through 80.
• The strategy can add up to three equally sized orders as price rises above the initial entry.
• A trailing profit exit arms 1.3% below average entry and closes after a 0.3% rebound from the favorable low.
• An 8% adverse move from average entry triggers a hard stop.
• The document gives no backtest performance evidence, and the defaults target a specific DOT perpetual market.

Tags

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