Dual RSI DCA - Long Strategy

The Dual RSI DCA - Long Strategy indicator is a long-only Dollar Cost Averaging (DCA) framework that utilizes two independent Relative Strength Index (RSI) conditions to manage entries and exits on lower timeframes. It is designed to capture momentum flips in volatile assets while managing adverse price action through a bounded five-level averaging-order ladder.

Usage

The strategy is primarily used by active intraday traders following volatile instruments like mid-cap altcoins or meme tokens. It operates on a 3-minute base timeframe by default, seeking to buy oversold reversals and exit on overbought rotations.

• Long Entry: Triggered when the RSI(14) crosses UP through the specified oversold level (default 31). This ensures the strategy enters as momentum begins to recover rather than simply buying into extreme weakness.
• Averaging Orders (DCA): If the price drops after the initial entry, the script places up to five safety orders at geometric deviation intervals. This lowers the average entry price, allowing for a profitable exit at a lower absolute price point.
• Exit Management: A position is closed when two conditions are met: the RSI(14) crosses DOWN through the overbought level (default 69) and the current price is at least a specific percentage (default 2.4%) above the average entry price.
• Risk Management: Unlike traditional strategies, this tool uses a "bounded ladder" approach instead of a stop loss. Total capital exposure is capped by the predefined size of the base and safety orders.

Details

This strategy decouples entry and exit decisions by using separate thresholds for the same RSI series. The entry gating (cross up 31) focuses on catching the end of a downtrend, while the exit gating (cross down 69) aims to capture the exhaustion of an uptrend.

The averaging ladder uses geometric progression for both deviation and order size:

• Deviation Progression: Each subsequent safety order is placed further apart than the last (e.g., AO1 at -1.3%, AO2 at -2.99%, etc.).
• Size Progression: Each safety order is larger than the previous one to effectively move the average price closer to the current market price.

The script includes built-in webhook integration, sending JSON payloads for entry, safety order fills, and market exits, making it compatible with automated trading bots.

Settings

Base Order

• Base Order Size (USDT): The initial position size in USDT.
• Use LIMIT for Base: Choose between a market order or a limit order for the initial entry.

Averaging Orders (AO)

• Averaging Orders per Trade: The maximum number of safety orders to be placed (0-10).
• First AO Size (USDT): The size of the first safety order.
• Deviation to First AO (%): The percentage drop from the base entry required to trigger the first safety order.
• Deviation Step Multiplier: Multiplier for the distance between subsequent safety orders.
• Order Size Multiplier: Multiplier for the size of subsequent safety orders.

RSI Filters

• RSI Timeframe: The timeframe used for RSI calculations (default is 3m).
• RSI Length: The number of bars used to calculate the RSI.
• Entry Crossing Up Level: The RSI level that triggers a long entry when crossed from below.
• Exit Crossing Down Level: The RSI level that triggers an exit when crossed from above.
• Minimum Profit (%): The minimum profit percentage required from the average entry price for the exit signal to fire.

Additional Settings

• DCA Bot Webhook: Configuration fields for Bot ID, Email Token, and Pair label for automated execution.
• Visualization: Toggles to display the DCA ladder lines, fill labels, and a real-time status table on the chart.

FAQ

How do I access Dual RSI DCA - Long Strategy?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Does this strategy use a stop loss?

No, the strategy uses a bounded position-size ladder to cap maximum capital deployment. Risk is managed by the total amount allocated to the base and all safety orders.

Can I use this on higher timeframes?

While the default is calibrated for a 3-minute timeframe, it can be adjusted for higher timeframes by re-evaluating the RSI thresholds and the deviation ladder to match the asset's volatility profile.