TAO Long DCA Strategy with RSI Oversold Entries and Doubling Adds

Summary

This long-only averaging strategy uses a low RSI reading on a higher timeframe to arm an initial entry. If price falls further from the base entry, it places up to five additional orders at preset percentage distances, with each order sized twice as large as the previous one. The exit is a fixed take-profit target above the position’s average entry price. The source describes configurable order sizes, deviations, timeframe, RSI settings, and a backtest date filter.

The document explicitly characterizes the sizing ladder as aggressive: filling every add can commit a substantial share of equity, while the strategy has no stop loss or trailing exit. The position is capped at the final add, but losses can still grow if price continues falling. Although code and defaults are provided, no backtest performance results appear in the supplied excerpt, so profitability and robustness cannot be assessed from it.

Key ideas

• A low higher-timeframe RSI reading arms a long entry.
• Additional buys are placed at fixed price declines from the base entry.
• The size of each averaging order doubles along the ladder.
• The position exits at a fixed profit target measured from average entry price.
• The design has no stop loss and can deploy substantial capital if every add fills.

Tags

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