ETH RSI Mean Reversion with Fixed-Ladder Dollar-Cost Averaging

Summary

This document describes a long-only ETH strategy that arms an entry when 4-hour RSI(14) falls below 28. It adds up to five averaging orders at fixed price deviations from the base entry, with order sizes increasing by a stated 1.8 scaling factor. The position exits at a fixed take-profit distance above its average entry. The script header specifies a 3% take-profit and says the strategy has no stop-loss or trailing exit; additions stop after the fifth averaging order.

The published configuration is calibrated for ETH perpetual futures and specifies commission and slippage assumptions, along with a maximum deployed-capital estimate for the default account and order sizes. The excerpt ends partway through the code, so it does not show the full order or alert logic, nor does it provide backtest performance results. Averaging into falling prices can leave capital tied up or expose the account to substantial losses, especially because the stated position has no stop-loss. The fixed ladder bounds the number of additions, but it does not cap market losses.

Key ideas

• A long entry is armed when 4-hour RSI(14) is below 28.
• Five averaging orders are placed at fixed deviations from the base entry, with sizes scaled by 1.8.
• The specified exit is a fixed take-profit above average entry, with no stop-loss or trailing exit.
• The ladder limits the number of averaging orders but does not limit losses from further price declines.
• The excerpt provides configuration details but no strategy performance results.

Tags

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