/*backtest
start: 2025-01-19 16:30:00
end: 2025-02-18 08:00:00
period: 1h
basePeriod: 1h
exchanges: [{"eid":"Binance","currency":"ETH_USDT"}]
*/

//@version=5
strategy("Lila Rai's doubling strategy", overlay=true)

// Input for price drop thresholds
dropPercent = 0.95  // 8% drop (100% - 8%)
takeProfitPercent = 1.05  // 5% TP above avg entry

var float avgPrice = na
var int qty = 1  // Start with 1 lot
var float totalCost = 0
var float totalQty = 0
var int doublingCount = 0  // To count the number of times the position size is doubled

// Calculate price movement
lookbackBars = 15  // Assuming 1-minute chart
priceChange = close / ta.highest(close, lookbackBars)

// Buy condition: price drops 8%
if (priceChange < dropPercent)
    totalCost := totalCost + close * qty  // Add cost of new position
    totalQty := totalQty + qty  // Update total quantity
    avgPrice := totalCost / totalQty  // Compute weighted average price
    strategy.order("DCA Buy", strategy.long, qty)
    qty := qty * 2  // Double the next position size
    doublingCount := doublingCount + 1  // Increase the doubling count

// Condition for selling in loss after 5 doublings
if (doublingCount >= 10)
    strategy.close("DCA Buy")  // Close the position at market price
    doublingCount := 0  // Reset the doubling count after selling
    qty := 1  // Reset qty to 1 for fresh buying

// Take Profit Condition: 5% above avg price
if (not na(avgPrice))
    takeProfit = avgPrice * takeProfitPercent
    strategy.exit("Take Profit", from_entry="DCA Buy", limit=takeProfit)

// Reset qty if take profit is hit
if (strategy.position_size == 0)  
    qty := 1  // Reset qty after exiting in profit

// Plot indicators
plot(avgPrice, title="Average Entry Price", color=color.blue, linewidth=2)
plot(close, title="Close Price", color=color.red, linewidth=1)