POL RSI Reversal Short Strategy with DCA and Trailing Exit

Summary

This document describes a short-only strategy for the POL perpetual market. It opens a position when a 9-period RSI on a 5-minute chart crosses down through 80, treating a retreat from overbought conditions as a possible reversal. The base order is followed by as many as three averaging orders placed at progressively higher prices, with configurable spacing and order size. A take-profit threshold arms a trailing exit from a favorable low, while a hard stop is set above the average entry.

The script exposes settings for order sizes, averaging count and spacing, RSI timeframe and threshold, exits, a backtest window, and bot webhook fields. Its stated defaults provide a concrete configuration, but the excerpt contains no performance results or analysis supporting profitability. DCA increases exposure when price moves against the short, and the stop distance does not establish the maximum realized loss under gaps or execution costs. The strategy is market-specific and should be assessed with fees, slippage, and changing market conditions.

Key ideas

• A short trade begins when 5-minute RSI(9) crosses down through 80.
• The strategy can add up to three short averaging orders above the initial entry.
• A trailing take-profit activates after a favorable move from the average entry.
• A hard stop is placed above the position’s average entry.
• The document supplies configurable settings but no evidence of backtest performance.

Tags

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