OPEN-SOURCE SCRIPT
DCA Strategy
Updated
Introducing the DCA Strategy, a powerful tool for identifying long entry and exit opportunities in uptrending assets like cryptocurrencies, stocks, and gold. This strategy leverages the Heikin Ashi candlestick pattern and the RSI indicator to navigate potential price swings.
Core Functionality:
Buy Signal: A buy signal is generated when a bullish (green) Heikin Ashi candle appears after a bearish (red) one, indicating a potential reversal in a downtrend. Additionally, the RSI must be below a user-defined threshold (default: 85) to prevent buying overbought assets.
Sell Signal: The strategy exits the trade when the RSI surpasses the user-defined exit level (default: 85), suggesting the asset might be overbought.
Backtesting Flexibility: Users can customize the backtesting period by specifying the start and end years.
Key Advantages:
Overall, the DCA Strategy offers a valuable approach for traders seeking to capitalize on long opportunities in trending markets with the help of Heikin Ashi candles and RSI confirmation.
Core Functionality:
Buy Signal: A buy signal is generated when a bullish (green) Heikin Ashi candle appears after a bearish (red) one, indicating a potential reversal in a downtrend. Additionally, the RSI must be below a user-defined threshold (default: 85) to prevent buying overbought assets.
Sell Signal: The strategy exits the trade when the RSI surpasses the user-defined exit level (default: 85), suggesting the asset might be overbought.
Backtesting Flexibility: Users can customize the backtesting period by specifying the start and end years.
Key Advantages:
- Trend-Following: Designed specifically for uptrending assets, aiming to capture profitable price movements.
- Dynamic RSI Integration: The RSI indicator helps refine entry signals by avoiding overbought situations.
- User-Defined Parameters: Allows customization of exit thresholds and backtesting periods to suit individual trading preferences.
- Commission and Slippage: The script factors in realistic commission fees (0.1%) and slippage (2%) for a more accurate backtesting experience.
- Beats Buy-and-Hold: Backtesting suggests this strategy outperforms a simple buy-and-hold approach in uptrending markets.
Overall, the DCA Strategy offers a valuable approach for traders seeking to capitalize on long opportunities in trending markets with the help of Heikin Ashi candles and RSI confirmation.
Release Notes
- Increased default weekly RSI to 90
- Increased the default quantity
- Added an additional bearish Heikin Ashi candle check before an entry
Release Notes
- Updated RSI to use the Heikin Ashi close
Release Notes
- Adjusted the entry and exit RSI values
Release Notes
- Added ability to exit partially from an asset in percentage terms (default is 50%);
- Updated exit logic: exit when the RSI crosser under the specified value, instead of just being higher than the specified value.
Release Notes
- Removed additional entry check
- Added automatic exit calculation
Release Notes
- Added ability to set custom RSI exit value
- Added ability to close all trades at specific time
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.