SOL RSI Reversal Shorts with Dollar-Cost Averaging

Summary

This short-only strategy is designed for SOL perpetual futures. It opens a short when a three-minute RSI with a nine-period setting crosses down through an overbought threshold. If price rises after entry, it can add up to three averaging orders at fixed percentage steps above the initial entry, using uniform order sizing by default. The exit plan places a trailing take-profit below the position’s average entry and a hard stop above it.

The document includes adjustable order sizes, averaging spacing, RSI settings, take-profit and stop levels, plus webhook fields for a trading bot. It describes a configurable script, not evidence that the approach works: the excerpt contains no strategy report, realized results, or detailed validation. Averaging into a losing short increases exposure during an adverse move, while the stop distance is wider than the stated profit target; fees, slippage, funding, and actual fill behavior can also affect results. The specified backtest window is in 2026, so it should not be mistaken for historical performance evidence in this document.

Key ideas

• The entry signal is a downward cross of a short-interval RSI through an overbought level.
• The short position can be increased with up to three orders placed above the base entry.
• The exit combines a trailing profit target based on average entry with a hard stop.
• The script exposes sizing, spacing, signal, exit, date, and webhook settings.
• No backtest results are included, and averaging can add exposure as price moves against the trade.

Tags

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