XAUT Short DCA Strategy Using an RSI Reversal Trigger

Summary

This TradingView strategy describes a short-only dollar-cost averaging approach for the XAUT perpetual contract. It opens a base short when three-minute RSI(9) crosses down through 80, treating a retreat from overbought conditions as a possible reversal signal. If price rises above the initial entry, it can add up to three equally sized orders at preset percentage offsets above that entry.

The exit logic tracks the position’s average price, applies a hard stop above it, and arms a trailing take-profit after price moves sufficiently in favor of the short. The script also includes configurable order sizing, a date filter, chart levels, and webhook alerts for a connected trading bot. The document provides implementation rules and example defaults, but no performance report or evidence that the approach is profitable. Results may depend on chart timeframe, fills, costs, and live execution; the code’s configured backtest window is limited.

Key ideas

• The short entry signal is a downward cross of three-minute RSI(9) through 80.
• Averaging orders are placed at rising price levels above the original short entry.
• The take-profit trails after price reaches a target below the position’s average entry.
• A hard stop closes the short if price rises far enough above the average entry.
• The script supports bot alerts and configurable backtest dates, but supplies no strategy performance evidence.

Tags

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