RSI Oversold Pyramiding with Partial Profit Taking

Summary

This long-only strategy seeks rebounds after a 14-period RSI crosses below 28.5. It adds positions progressively, sizing each entry at 6.6% of account equity and allowing up to 15 additions. When price reaches a target 900% above the average entry price, it closes half the position. The document also describes chart displays for signals, RSI, entry price, and target price.

The material offers rules and a backtest configuration for ETH/USDT on an hourly interval, but gives no performance statistics. It warns that repeated entries during a strong downtrend can create large exposure, and that parameter choices and limited liquidity may impair results or execution. Proposed safeguards include trend and volume filters, drawdown and exposure limits, stop-losses, and more flexible staged exits. The unusually distant profit target and absence of a defined stop-loss make the stated risk controls incomplete; the strategy's effectiveness cannot be judged from the supplied setup alone.

Key ideas

• A 14-period RSI crossing below 28.5 triggers a long entry.
• Each entry uses 6.6% of account equity, with up to 15 pyramiding entries allowed.
• The strategy partially closes half the position at a target 900% above the average entry price.
• Repeated entries in a strong downtrend can increase exposure, and the described rules specify no stop-loss.
• The hourly ETH/USDT backtest configuration includes 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.