Price-Drop Entries with Repeated Long Adds and 5% Targets

Summary

The described approach buys after a 5% decline, adds long positions on further weakness within a limited candle window, and aims to close each position after a 5% rise from its entry. It allows up to four additions and describes a 3% stop loss. The published backtest settings specify BTC-USDT futures over roughly one year, but the document provides no performance figures or analysis to establish whether the method worked.

The source code does not fully match that description. Its entry condition compares the close with closes from the previous five bars using the configured 3% loss parameter, while a candle counter controls how frequently new entries may occur. It places individual 5% take-profit exits but does not implement the stated stop loss. The account size is configurable, though the code does not show a portfolio-level exposure limit. Results would depend on execution assumptions, fees, and how simultaneous positions are handled.

Key ideas

• The written rules describe opening and adding long positions after price declines.
• The stated plan targets a 5% gain per entry and describes a 3% stop.
• The code uses a 3% decline threshold and places individual 5% profit exits.
• The source does not implement the described stop loss.
• The BTC-USDT futures test settings include 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.