Oversold RSI Entries with a Doubling DCA Ladder for AMZN Perpetuals

Summary

This is a long-only dollar-cost averaging framework for an AMZN perpetual contract. It arms a base entry when the 4-hour RSI falls below its configured oversold threshold, then places up to five additional buy orders at fixed declines from the base entry. The order sizes double at each rung, and the position exits at a fixed percentage above its average entry price. The described setup has no trailing exit or stop loss, and the code header emphasizes the resulting high capital exposure if the full ladder fills.

The document provides configuration details, including an optional date filter, fees, and slippage, but the excerpt ends partway through the source and includes no backtest results. The bounded ladder limits the number of adds, yet a sustained decline can leave a large position with no stop-based loss limit. RSI oversold readings can persist during severe downtrends, so the entry condition alone does not ensure reversal. Position sizing and the capital committed to the full ladder are central risks.

Key ideas

• A low 4-hour RSI reading triggers a long entry in the described AMZN perpetual setup.
• Five additional orders are placed at fixed price declines, with each order larger than the previous one.
• The exit targets a fixed gain above average entry and does not trail the price.
• The strategy has no stop loss, and a fully filled ladder can consume substantial capital.
• The provided source excerpt has 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.