RSI and Volume Filters for a Pyramided Long Strategy

Summary

This strategy combines an oversold RSI reading with unusually high volume to trigger long entries. Its defaults use a 14-period RSI, a 30 oversold threshold, and volume above 1.5 times its 20-period simple moving average. It can add up to three positions, requiring each new entry to occur after a specified price decline from the previous entry. Position size is set as a percentage of equity, and the script defines take-profit and stop-loss levels relative to the average or lowest entry price, with cooldown periods after exits.

The visible source is cut off during the entry logic, so the complete order management, exit implementation, and plotting behavior cannot be confirmed from this document. It gives configuration values but no backtest period, instrument, performance results, or evidence that the ladder improves outcomes. Adding to a falling market can increase exposure during a sustained decline; the stop and cooldown rules therefore matter, but their effectiveness cannot be judged from the excerpt.

Key ideas

• A long signal requires both an oversold RSI and volume above a multiple of its moving average.
• The default configuration permits up to three entries, spaced by a minimum price decline from the prior entry.
• The strategy defines a take-profit level, a stop-loss level, and separate cooldown settings after exits.
• The source is truncated, preventing confirmation of the complete entry and exit behavior.
• No instrument-specific backtest or performance evidence is supplied.

Tags

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