Long-Only DCA Grid with Increasing Orders and Average-Price Take Profit

Summary

This long-only strategy opens an initial position, then adds buys when price falls by a fixed percentage from the last grid level. Each additional order’s cash size grows by a multiplier, up to a configurable order limit. The strategy calculates the position’s average entry price and places a limit exit a set percentage above that average. After a completed exit, it resets the order counter and grid reference. The displayed defaults use a 1.1% grid step, a 1.8% take-profit offset, a 1.2 size multiplier, and a 15-order maximum.

The document provides code and parameter descriptions but no backtest report, market selection, or assessment of fees, slippage, or drawdown. Exposure can grow as successive orders are added, while a continued decline may leave the strategy holding a large position without reaching its take-profit price. The example therefore defines mechanics rather than demonstrating profitability or suitability across market conditions.

Key ideas

• The strategy starts with a long entry and adds orders after declines from the last grid price.
• Additional order sizes increase according to a configurable multiplier.
• The exit limit is set above the position’s weighted average entry price.
• The order count and grid reference reset after the position closes.
• The document gives no performance evidence or analysis of costs and drawdown.

Tags

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