Technical-Filter DCA with Progressive Position Sizing

Summary

This long-only dollar-cost-averaging approach combines EMA trend structure, Bollinger Band position, MACD, and RSI conditions for initial entries. When price falls below average entry cost, it can add progressively larger amounts after increasingly deep declines, subject to a maximum allocation. Buy size is calculated as a share of current equity. Exits require a minimum profit and may be triggered by weakening trend or momentum, a decline from a recent high, or the configured stop level.

The document emphasizes that the nominal 100% stop setting effectively permits a near-total loss before it activates, so risk control mainly relies on signal-based exits. It supplies no backtest outcomes, despite listing a test period and account settings, and explicitly recommends evaluating drawdown, consecutive losses, and behavior across market regimes. The strategy is intended for pullbacks during sustained uptrends; in bearish or prolonged sideways markets, averaging down can deepen losses and consume capital before any recovery.

Key ideas

• Initial entries require agreement among trend, MACD, Bollinger position, and RSI conditions.
• DCA additions use deeper price-decline thresholds and progressively larger equity-based allocations.
• The configured 100% stop is effectively inactive until price approaches zero.
• Exits depend on minimum profit plus weakening signals or a drawdown from a recent high.
• The document gives no performance results and warns that averaging down can create substantial drawdowns.

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