RSI is a good indicator to open a position, but quite often signals fire around just when a dump is around to occur, especially for high volatility coins. For example, RSI might drop to less than 30 and price might still continue to fall by a good 2-5% on an average, leading to bad entry points.
A better approach can be to implement a No Longer Oversold/Overbought condition, where signals fire just around when price rebounds.
Can we implement this as a deal start condition for bots? Again, just like any other indicators, this will not work 100%, but is still one step ahead and acts as a small safety measure.
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Additionally, is it possible to implement an RSI-based deal start condition where we can define the entry start condition based on the number of times the RSI value gets hit?
For example, on a 1 minute chart, we can say that start the deal only when RSI drops below 30, 3 times during a 15-30 minute period. This is because the first time the RSI value drops, it’s usually just around when the dump gains momentum and keeps going down.
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To add more context about the No Longer condition, RSI might experience the following
drop below 30
then hit 25
then 19
then 25
then 21
then 32.
So, if I define the deal start condition as No Longer Oversold (Value: 30), a new signal to open a deal will only fire at 6th stage from the above example when the price improves. Without this condition, in the present scenario, a deal will simply start at the 1st stage even as the price keeps moving down.
Okay, so it indeed does pretty much the same thing as to what I’ve requested. Any idea if we can somehow implement the second part of the request, where the bot will only start a new deal when a particular RSI value gets hit a specified number of times? If not, Ares can consider implementing this.
maybe a condition that says rsi must go down and touch 20 or 10 and then crossing up 30 gives the signal " no longer oversold"
This way we filter the weak signals that only pinch the 30 level.
Couldn’t that be achieve by two RSI with cross up 20 and cross up 30? Or is it that those steps shall be able to happen before? Then you could use Keep true, couldn’t you?
This would require a counter and a reset timeframe to remove counts again after that period. Maybe that could be a general feature to say, count how many times a signal was received and only act on the third occurence. This could be configurable per indicator and would in a way work like Keep true which currently only offers on and off for a certain timeframe after the last occurence.
You’re right, it doesn’t work. I just back tested it on AEVO perpetual. Crossing down 20 and crossing up 30. But the bot didn’t open a single deal. Need some other workaround for this.
I don’t know if I understand it correct, but you can also do as a deal start condition: RSI crossing down 30 open the deal and than work with DCA RSI Condition (for example 5 DCA Orders always RSI crossing down or up conditions) or am I wrong?
Yes, technical indicators are available for DCA levels as well. However, unfortunately, there’s no one condition you can specify here. For example, if you put the condition as RCI less than 30, the bot will place an order just around even as the price keeps moving down. You need multiple conditions like RSI less than 30 and then MACD moving up to actually buy just around price reversal. For DCA orders, something like MACD moving up on 5-15 minute timeframe looks better.