RSI-Triggered Short DCA with Averaging Orders and Trailing Take Profit

Summary

This short-only strategy opens a base position when a five-minute RSI crosses downward through an overbought level. If price rises above the base entry by preset percentage steps, it adds averaging orders, with configurable spacing and order sizing. The defaults described in the script set three additions at equal spacing and equal size. A hard stop is set above the position’s average entry; on a favorable decline, a take-profit threshold arms a trailing exit that closes after a specified rebound from the lowest price reached in that zone.

The script is calibrated for a named perpetual crypto pair and includes a selectable backtest window, order and fee assumptions, visual position levels, and webhook messages for a trading bot. Its source and settings explain the mechanics, but the document supplies no strategy-report results or evidence of profitability. Averaging into a losing short increases exposure as price rises, while the stop, fills, costs, and alert execution may differ from live trading. The RSI trigger alone does not establish that a reversal will follow.

Key ideas

• A short base order is triggered by a five-minute RSI crossing down through the configured upper level.
• Additional short orders are placed at configurable percentage deviations above the base entry.
• The take-profit process arms below average entry and trails the low, while a hard stop sits above average entry.
• The script includes backtest-window controls, execution assumptions, visual levels, and bot webhook alerts.
• The document gives no performance evidence, and averaging adds exposure when price moves against the short.

Tags

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