Equity-Based Position Sizing for a Leveraged RSI Strategy

Summary

This example combines RSI threshold crossings with position sizing tied to account equity. It opens a long position when RSI rises through the oversold level and a short when RSI falls through the overbought level. Contract quantity is calculated from strategy equity, a leverage multiplier, and the closing price, then rounded to a selected precision. As equity changes, the nominal position size changes as well, creating compounding exposure.

The provided defaults use a 14-period RSI, thresholds of 30 and 70, and one-times leverage; the source permits leverage up to 100 times. The document gives BTC/USDT futures backtest settings spanning roughly a year, but no performance results. It explains that higher leverage increases liquidation risk and recommends testing parameter stability and adding stop-loss or other risk controls. The sizing rule alone does not define a complete risk framework: it does not describe a maximum loss per trade, volatility adjustment, or drawdown limit.

Key ideas

• RSI crossings of the oversold and overbought thresholds trigger long and short entries.
• Position quantity scales with account equity and the configured leverage, then is rounded to a chosen precision.
• Equity-linked sizing compounds exposure as the account value changes.
• The example includes no stop-loss rule, per-trade risk cap, or drawdown control.
• The published BTC/USDT backtest settings include no reported performance results.

Tags

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