TAO Long DCA Strategy with RSI Entry and Doubling Safety Orders
Summary
This long-only dollar-cost-averaging framework for TAO perpetuals opens a base position when a 14-period RSI on the four-hour timeframe falls below 28. If price declines from the base entry, it adds up to five safety orders at preset percentage deviations, with each order size doubling the prior one. The exit is a fixed take-profit target above the position’s average price; the design has no stop loss or trailing exit.
The script includes configurable order sizing, entry type, date window, and fees and slippage for strategy testing, along with alert messages for a connected bot. Its own description characterizes the default exposure as aggressive: the base order plus all safety orders can deploy a substantial share of the stated initial capital. The backtest setup and risk warning are not evidence of profitable performance. Losses can continue to grow while price falls, and the finite order ladder does not cap potential downside on an open position.
Key ideas
- The base long entry is triggered by a deeply oversold four-hour RSI reading.
- Five safety orders add exposure at fixed declines measured from the base entry.
- Order sizes increase at each safety-order rung, creating substantial concentration risk.
- A fixed profit target is calculated from the position’s average entry price.
- The strategy has no stop loss, and the document supplies no performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.