Long-Only Support Retest Entries with a Volatility-Based DCA Grid

Summary

This long-only strategy identifies a potential support retest when consecutive candles share a low and the current low rises above that level. It places four limit entries at progressively spaced prices above the repeated low, with spacing derived from recent candle ranges rather than ATR. Each order is sized as a fraction of the initial capital-based contract estimate, distributing the position across the grid. Unfilled orders are canceled after a configurable wait.

The strategy places a stop one minimum tick below the repeated low and sets its target using the distance from the close to that stop multiplied by a reward factor. ATR is used to check that sufficient history is available and to configure the target multiplier, while the entry grid uses its separate range-based volatility calculation. The document explains the rules but provides no performance evidence or market-specific guidance. Since it averages into a long position near support, execution, price gaps, instrument sizing, and the behavior of the chosen lookback settings can materially affect outcomes.

Key ideas

• A repeated low followed by a higher low defines the long support-retest setup.
• Four limit orders are distributed above the support level using a candle-range volatility estimate.
• Unfilled grid orders are canceled after a configurable number of candles.
• The stop is placed one minimum tick below support, and the target scales the stop distance by a reward factor.
• The document gives no backtest results, so the strategy's performance is not established.

Tags

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