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

Summary

This long-only DCA strategy arms a base entry when a 4-hour RSI falls below a configurable threshold. If price declines further, it can place up to five averaging orders at fixed percentage distances below the base entry, with larger quote amounts at deeper levels. The code sizes each order from its quote amount and current price, and calculates the take-profit level from the position’s average entry price. It closes the whole position when price reaches that fixed target.

The document specifies defaults for a particular perpetual market and gives an example of the cumulative capital required if every averaging order fills. The ladder limits the number of additions, but there is no stop loss, and the strategy does not add below its last configured level. A sustained decline can therefore leave capital tied up in a losing position. Although the document includes a date filter and webhook alerts, it provides no performance results or evidence that the parameters generalize to other assets or market conditions.

Key ideas

• A 4-hour RSI below the configured threshold triggers the base long entry.
• Five optional averaging orders use fixed declines from the base entry, with increasing quote sizes.
• The take-profit target is set as a percentage above the position’s average price and closes the full position.
• The strategy has no stop loss, so a persistent decline can leave an open loss after all averaging levels are used.
• The document provides setup details but no backtest results establishing performance.

Tags

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