Bollinger Bands + RSI Alerts for 3commas/DCA bot

The Bollinger Bands + RSI Alerts for 3commas/DCA bot indicator identifies potential entry points for mean-reversion strategies by combining Bollinger Band breakouts with RSI filtering to trigger automated trading bot signals.

Usage

This tool is primarily designed to generate "Buy" signals for DCA (Dollar Cost Averaging) bots, such as those used on 3commas. A buy signal is generated when the price crosses back above a reset level (the Basis/SMA) after having breached the upper Bollinger Band, provided the RSI remains below a specified overbought threshold. This logic aims to capture momentum shifts while ensuring the asset is not overextended.

For optimal results, it is recommended to use this script on lower timeframes ranging from 3-minute to 15-minute intervals. To automate trading:

1. Set up an alert using the "BB+RSI Buy Signal" condition.
2. Link the alert message to your bot's "Message for deal start signal."

Details

The script utilizes a specific logic flow to filter entries:

• Trend Reset: The logic tracks the bars since the price was above the Upper Bollinger Band and since it was below the Basis (SMA).
• Signal Trigger: A signal is triggered when the count of bars since an "above" condition crosses under the count of bars since a "reset" condition.
• RSI Filter: The signal is only valid if the RSI is below the user-defined Overbought threshold, preventing entries during extreme parabolic moves.

Settings

• Standard Deviation: Adjusts the width of the Bollinger Bands. Lower values make the bands tighter, resulting in more frequent signals.
• Simple MA period: Defines the lookback period for the Basis (middle line) of the Bollinger Bands.
• RSI Period: Sets the lookback period for the Relative Strength Index calculation.
• RSI Overbought threshold: The maximum RSI value allowed for a signal to be valid. This prevents buying when the market is overextended.

FAQ

How do I use this with a DCA bot?

You can create an alert on TradingView using this script and paste your bot provider's webhook URL and message into the alert settings to automate your "Deal Start" signals.

What are the recommended bot settings?

While users should perform their own testing, common settings for this strategy include a Take Profit of 0.3%, a Safety Order Volume Scale of 1.2, and a Price Deviation of 0.25% with multiple safety trades.

How do I access Bollinger Bands + RSI Alerts for 3commas/DCA bot?

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