RSI-Triggered Long DCA with Fixed Add Levels and Take Profit

Summary

This long-only averaging strategy arms an entry when the selected timeframe’s RSI falls below a configurable oversold threshold; the stated defaults use a 14-period RSI on a four-hour chart with a threshold of 28. After the base entry, it places up to five additional purchases at fixed percentage declines from the base price. Each successive order is larger, following a doubling schedule in the supplied configuration, so added purchases reduce the position’s average entry price as the market falls.

The exit closes the full position when price reaches a fixed percentage above the average entry. There is no stop loss or trailing exit, and the ladder stops adding after its final level. The source explicitly describes the default exposure as aggressive and gives a maximum deployed amount relative to its example account size. That cap does not prevent a substantial loss if price continues falling, and RSI oversold readings can persist during declines. The document contains implementation details but no backtest results establishing profitability or robustness.

Key ideas

• The base long entry is triggered by an RSI reading below a configurable threshold.
• Additional orders activate at fixed declines measured from the original base entry.
• The configured add sizes double at each rung, increasing exposure as price falls.
• The strategy exits at a fixed profit distance from the position’s average entry.
• There is no stop loss, and the source characterizes the default maximum exposure as aggressive.

Tags

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