Dual-RSI DCA Long Strategy with a Deviation Ladder

Summary

This long-only strategy combines a lower-timeframe RSI reversal signal with dollar-cost averaging. A base position opens when RSI crosses upward through its oversold threshold. If price falls, up to five safety orders add exposure at progressively wider percentage deviations from the base entry, with order sizes increasing by a multiplier. The script’s defaults specify a 3-minute RSI, a 31 entry threshold, and a 69 exit threshold.

To close, RSI must cross down through its exit threshold while price is at least 2.4% above the position’s average entry. The code also includes optional limit entry, date filtering, chart levels, status displays, and webhook alerts. It gives no backtest results or empirical support for the parameters. It has no stop loss; its stated capital bound depends on the configured order ladder and does not remove the risk of a prolonged decline or loss on the position.

Key ideas

• An upward RSI threshold cross triggers the base long entry.
• Safety orders add to the position as price falls through cumulative deviation levels.
• The take-profit condition requires both a downward RSI cross and a minimum gain from average entry.
• The strategy has no stop loss and relies on a bounded number and size of averaging orders.
• The script provides implementation details but no performance evidence for its settings.

Tags

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