Short DCA Entries Triggered by Bollinger %B and RSI

Summary

This script outlines a short-only averaging strategy for a crypto pair. It arms an entry when lower-timeframe Bollinger %B crosses above a selected upper-band level and RSI crosses above an overbought threshold. The documented defaults use a 30-minute signal timeframe, a 2-hour chart calibration, and a nine-order averaging ladder whose spacing and order sizes increase as price moves against the short. A take-profit closes the basket relative to its average entry price.

The script describes bounded exposure through a fixed number of safety orders and gives a default maximum deployment estimate of about 8.93% of equity. It does not include a stop loss, so the cap depends on all ladder orders being limited and filled as intended; a sustained rise beyond the ladder remains a material risk. The excerpt ends during the inputs, so it does not show the full entry, order-management, alert, or backtest logic. The supplied calibration and risk estimate are configuration claims, not evidence of profitability or robustness across markets.

Key ideas

• Entries require both a Bollinger %B upward crossing and an RSI upward crossing into overbought territory.
• The strategy only opens short positions and adds to them through a finite deviation ladder.
• Order sizes and deviation spacing increase across averaging orders under the stated defaults.
• The basket exits at a profit target measured from its average entry price.
• There is no stop loss, and the stated exposure cap depends on the configured bounded order ladder.

Tags

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