Periodic Cost Averaging with Position-Based Exit Rules

Summary

This document describes a periodic BTC/USDT futures strategy that adds long exposure using a fixed investment amount. The selected schedule is weekly or monthly, and the order quantity is calculated by dividing the investment amount by the current close. It also defines price levels around the average position price for a loss threshold and a profit threshold, then closes positions under specified conditions.

The published settings give a daily chart and a roughly one-year backtest window, but no returns, drawdowns, or other results are reported. The source logic has important inconsistencies: its weekly and monthly buy conditions depend on changes in position size rather than elapsed calendar periods, so the stated schedule is not clearly implemented. The loss exit checks for a short position even though entries are long, making that condition ineffective for the described holdings. The profit threshold can close a long, but the document does not establish how periodic accumulation behaves after closing or how fees, funding, and execution affect outcomes.

Key ideas

• The strategy sizes each long order as a fixed investment amount divided by the current closing price.
• The chosen accumulation interval is weekly or monthly, but the source does not clearly schedule buys by calendar time.
• A profit threshold is evaluated against the average entry price for long holdings.
• The loss condition checks for a short position despite the strategy opening long positions.
• The stated backtest settings contain no reported performance or risk statistics.

Tags

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