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DCA Bot Strategy: RSI Oversold Entry Strategy

This strategy aims to catch deep oversold dips by combining short- and long-term RSI filters, then scale in via averaging.

Updated today

Information:

  • This strategy demonstrates a long DCA bot on Binance Spot/Demo Account using RSI 7 confirmations on 15m and 4h timeframes.

  • The results below are from a Demo account for educational purposes only.

  • View/Copy the bot configuration: RSI Oversold DCA Bot in 3Commas

  • View sample backtest results:
    • Version 1 - Conditional Take Profit
    • Version 2 - No Stop Loss, 3 Take Profit Steps

  • Try these configurations in your Demo account or run a Backtest before applying to real trading.

  • You can adjust base and averaging order sizes to match your portfolio size or risk level. The setup shown below uses 110K+ USDT total capital.

Disclaimer:

  • This article is for educational purposes only and does not constitute financial or investment advice.

  • Past performance, including simulated results, does not guarantee future outcomes.


How It Works

  • Entry is triggered only when RSI(7, 15m) < 20 and RSI(7, 4h) < 20.

  • If the price dips further after entry, the bot places averaging orders to improve average entry price.

  • It exits when RSI(7, 1h) > 80 and the trade meets minimum profit.

  • Full reinvestment ensures compounding across active trades.


Main Settings

  • Direction: Long

  • Bot type: Multi-pair

  • Pairs (USDT): AAVE, ALGO, ARPA, BTC, COMP, ETH, LTC, LINK, SOL (9)

  • Profit currency: USDT (Quote)

  • Simultaneous trades per same pair: 1

  • Max active trades: 4


Entry Orders

  • Base order size: 500 USDT

  • Start order type: Limit

  • Condition 1: RSI 7, 15 minutes, Less Than 20

  • Condition 2: RSI 7, 4 hours, Less Than 20

Averaging Orders

  • Type: Dollar-Cost Averaging (DCA)

  • Averaging order size: 600 USDT

  • Price deviation to open averaging orders: 0.75%

  • Max avg. orders per trade: 5

  • Max avg. orders placed on exchange: 1

  • Averaging order size multiplier: 2.25×

  • Averaging order step multiplier:


Exit Orders

  • Type: Conditions

  • Indicator: RSI 7, 1 hour, Greater Than 80

  • Minimum profit: 2.5%

  • Minimum profit type: Percentage from average price

  • Reinvest profit: 100%


Advanced Settings

  • Cooldown between trades: 33 sec


Performance Snapshot (as of 15 Oct 2025)

Metric

Result

Completed trades

265

Active trades

0

Max simultaneous trades

4

Total profit

+$74,544.98

Average profit per trade

281 USDT

Account type

Demo Account (Binance Spot)

Result Summary:

  • Over 265 completed trades, this configuration generated a simulated total profit exceeding $74K, maintaining consistent compounding through full reinvestment.

  • Performance Period: March 5 2022 → October 15 2025 (3 years 7 months)

  • Maximum amount for bot usage: 110,796.88 USDT

  • Total Profit: 74,544.98 USDT

  • ROI: 67.3% total (15.1% annualized)

Configuration note (accuracy):

  • Results prior to Feb 21, 2025 reflect this exit order settings:

    • Minimum take profit: 2.5%

    • RSI(7) 1h > 80 close

    • No Stop loss

  • On Feb 21, 2025, bot was updated to:

    • Take Profit steps (1/2/3%)

    • Trailing: OFF

    • Stop Loss: 28.25%

    • Stop Loss Breakeven: Move to breakeven

  • Pairs list was adjusted over time (e.g., FTT/SRM/MATIC removed).


Why It Works

  • Double-RSI Oversold Filter: Confirms deep oversold across short/long timeframes before entry.

  • Averaging with Multipliers: Expands position sizing and spacing to improve average entry price.

  • Exit Guard (RSI 1h > 80 & min TP): Encourages distribution into strength and avoids tiny bounces.

  • Cooldown Control: Reduces overtrading noise.

  • Reinvestment: Compounds gains automatically.

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