RSI Dip Entries with EMA Trend Filtering and Leveraged DCA

Summary

This document presents a long only averaging strategy for leveraged perpetual futures. It seeks an entry when a fast timeframe RSI crosses below an oversold threshold while a slower timeframe’s fast EMA is above its slow EMA. If price falls after entry, up to four safety orders are placed at increasingly spaced price deviations, with order sizes allowed to grow modestly.

The described exits include a take profit with trailing behavior, a hard stop, and a forced close after a maximum holding period. The script also exposes leverage, margin, RSI and EMA periods, order spacing, and exit parameters, and notes that its equity compounding does not directly model all of the referenced bot’s risk reduction and reinvestment behavior. The supplied text ends partway through the stop loss description and provides no performance results, so it does not establish profitability or fully document the implementation.

Key ideas

• Entry combines a fast timeframe RSI dip signal with a slower timeframe EMA uptrend filter.
• Safety orders add exposure at preset price deviations, with spacing and size multipliers.
• The framework describes trailing take profit, hard stop, and time based exits.
• Backtest behavior may differ from the referenced bot’s risk reduction and reinvestment features.

Tags

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