Long DCA Entries on RSI Dips with an EMA Uptrend Filter

Summary

This leveraged, long-only perpetual-futures framework combines a short-timeframe RSI dip signal with a slower-timeframe trend filter: RSI must cross down through its chosen level while the fast EMA remains above the slow EMA. Once entered, the position can add a fixed number of safety orders at cumulative price-deviation levels from the base entry. Both the spacing between orders and their margin sizes can scale. Exit logic includes a take-profit target with trailing retracement, a hard stop based on average entry, and an optional maximum holding period.

The script includes exchange-bot webhook alerts and backtest settings, but explicitly says that some external bot risk-reduction and reinvestment behavior is not modeled directly. Defaults are described for a particular XMR/USDT perpetual market and timeframe with high leverage; the document provides no backtest results to establish effectiveness. A stated adverse price move at the configured leverage could exceed the posted margin, and exchange execution, liquidation rules, fees, and slippage may differ from the strategy simulation. The source is therefore a configurable example, not evidence of reliable returns.

Key ideas

• Entry requires a lower-timeframe RSI cross below its threshold while the higher-timeframe fast EMA is above the slow EMA.
• Safety orders use cumulative price-deviation thresholds and configurable step and size multipliers.
• The long position can close through a trailing take profit, a hard stop from average entry, or a maximum holding-time rule.
• The script sends webhook alerts, while some external bot risk and reinvestment features are not directly represented.
• High leverage and repeated safety orders can expose the account to liquidation and substantial losses.

Tags

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