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This strategy combines Relative Strength Index (RSI) and martingale position averaging principles. It initiates a long position when RSI goes below the oversold line, and doubles down the position if the price continues to decline. Profit taking is achieved with small targets. This strategy is suitable for high market cap coins in spot trading for steady gains.

- Use RSI indicator to identify market oversold conditions, with RSI period set to 14 and oversold threshold set to 30.
- Initiate first long position with 5% of account equity when RSI < 30.
- If price declines 0.5% from the initial entry price, double the position size to average down. If price declines further, quadruple the position size to average down again.
- Take profit at 0.5% increment each time.
- Repeat the cycle.

- Identify market oversold conditions with RSI for good entry points.
- Martingale position averaging brings down average entry price.
- Small profit taking allows for consistent gains.
- Suitable for high market cap coins spot trading for controlled risks.

- Prolonged market downturn can lead to heavy losses.
- No stop loss means unlimited downside.
- Too many averaging downs increases loss.
- Still has inherent long direction risks.

- Incorporate stop loss to limit max loss.
- Optimize RSI parameters to find best overbought/oversold signals.
- Set reasonable profit taking range based on specific coin volatility.
- Determine averaging pace based on total assets or position sizing rules.

This strategy combines RSI indicator and martingale position averaging to take advantage of oversold situations with appropriate averaging down, and small profit taking for steady gains. It has risks that can be reduced through stop losses, parameter tuning, etc.

/*backtest start: 2024-01-06 00:00:00 end: 2024-02-05 00:00:00 period: 1h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ // This Pine Scriptâ„¢ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/ // Â© Stavolt //@version=5 strategy("RSI Martingale Strategy", overlay=true, default_qty_type=strategy.cash, currency=currency.USD) // Inputs rsiLength = input(14, title="RSI Length") oversoldThreshold = input(30, title="Oversold Threshold") // Keeping RSI threshold profitTargetPercent = input(0.5, title="Profit Target (%)") / 100 initialInvestmentPercent = input(5, title="Initial Investment % of Equity") // Calculating RSI rsiValue = ta.rsi(close, rsiLength) // State variables for tracking the initial entry var float initialEntryPrice = na var int multiplier = 1 // Entry condition based on RSI if (rsiValue < oversoldThreshold and na(initialEntryPrice)) initialEntryPrice := close strategy.entry("Initial Buy", strategy.long, qty=(strategy.equity * initialInvestmentPercent / 100) / close) multiplier := 1 // Adjusting for errors and simplifying the Martingale logic // Note: This section simplifies the aggressive position size adjustments without loops if (not na(initialEntryPrice)) if (close < initialEntryPrice * 0.995) // 0.5% drop from initial entry strategy.entry("Martingale Buy 1", strategy.long, qty=((strategy.equity * initialInvestmentPercent / 100) / close) * 2) multiplier := 2 // Adjusting multiplier for the next potential entry if (close < initialEntryPrice * 0.990) // Further drop strategy.entry("Martingale Buy 2", strategy.long, qty=((strategy.equity * initialInvestmentPercent / 100) / close) * 4) multiplier := 4 // Additional conditional entries could follow the same pattern // Checking for profit target to close positions if (strategy.position_size > 0 and (close - strategy.position_avg_price) / strategy.position_avg_price >= profitTargetPercent) strategy.close_all(comment="Take Profit") initialEntryPrice := na // Reset for next cycle

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