RSI-Gated Long DCA with Fixed Safety Orders for POL Perpetuals
Summary
This long-only averaging strategy for POL perpetuals arms an entry when the 4-hour RSI falls below a configured oversold threshold. After a base order, it places five additional orders at fixed percentage declines from the base entry, with order sizes increasing at each rung. Positions close at a fixed take-profit distance above the average entry; there is no trailing exit or stop loss, and the ladder ends after the fifth additional order.
The published configuration includes a BTC-independent POLUSDT perpetual market, a date-limited backtest window, transaction costs, and slippage assumptions, but the supplied excerpt contains no performance report or results. Exposure therefore grows as the price falls, while losses can remain open if price continues below the final order level. The strategy's fixed ladder bounds additional entries but does not cap the market loss; order sizing and account exposure need careful consideration. RSI oversold readings can also persist during sustained declines.
Key ideas
- A 4-hour RSI threshold arms long entries when the market appears deeply oversold.
- Five fixed-deviation safety orders add to the position as price declines.
- Order sizes increase across the ladder, raising total exposure during drawdowns.
- A fixed take-profit closes the position relative to its average entry price.
- The method has no stop loss, and the supplied material does not report backtest performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.