SOL RSI Reversal Short Strategy with DCA Averaging and Trailing Exit
Summary
This SOL perpetual-futures strategy opens a short when a three-minute RSI(9) crosses down through 80, using the signal as a possible overbought reversal. It starts with a base order and can add up to three equally sized averaging orders as price rises through fixed levels above the base entry. The default ladder spaces those additions at one percentage point intervals.
The exit logic uses the position’s average entry: a take-profit threshold arms a trailing exit, while a hard stop closes the position if price rises far enough against the short. The script also exposes order sizing, fees, slippage, date filters, chart displays, and webhook alerts, and describes defaults calibrated for SOLUSDT perpetual trading. Its contents specify the rules and backtest settings but provide no performance evidence. RSI reversals and averaging into a losing short can carry substantial risk; results will also depend on execution assumptions and market conditions.
Key ideas
- A short signal occurs when three-minute RSI(9) crosses downward through 80.
- The strategy adds up to three short averaging orders at preset price increases above the initial entry.
- A trailing take-profit activates after price moves below average entry by the configured target distance.
- A hard stop closes the position if price rises above average entry by the configured stop distance.
- The document describes implementation settings but supplies no evidence of profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.