- Trading Bot – Dynamic RSI (Professional) - Robot Strategy -

1. General Concept and Philosophy

This strategy was designed for systematic traders and work especially well on short timeframes (1 to 5 minutes), who seek to capture trend reversal movements with a high degree of confirmation. The goal is not to follow the trend, but to identify precise entry points in oversold or overbought zones, and then to exit the position dynamically to adapt to changing market conditions.

The originality of Trading Bot Dynamic RSI lies not in a single indicator, but in the intelligent fusion of several concepts:

• Dynamic RSI bands for both entries and exits.
  
• A triple confirmation filter to secure trade entries.
  
• A fully parameterizable design ready for automation.
  

2. Originality at the Core of the Strategy: Key Features

Dynamic Exits on RSI Bands: This is a main original feature of this script. Unlike traditional strategies that use fixed Take-Profits and Stop-Losses, this one uses an exit RSI band, calculated with parameters independent of the entry ones. This allows the strategy to:

• Adapt to Volatility: In a volatile market, the exit band will move further away, allowing for the capture of larger moves. In a ranging market, it will tighten to secure smaller gains.
  
• Optimize Profits: The exit occurs when momentum genuinely fades, not at an arbitrary price level, thus maximizing the potential of each trade.
  

Triple Confirmation Filter for Precise Entries: To avoid false signals, each entry is validated by the convergence of three distinct conditions:

• The base signal is generated when the price reaches an overbought or oversold zone, materialized by an RSI band calculated directly on the chart.
  
• The WaveTrend oscillator must also be in an extreme zone, confirming that the short-term momentum is ready for a reversal.
  
• Finally, the StochRSI must validate that the RSI itself is in an overbought or oversold condition, adding an extra layer of security.
  

"Automation Ready" Design: The strategy was developed with automation in mind.

• Customizable Alert Messages: All messages for entries and exits (Long/Short) can be formatted to be compatible with automated trade execution platforms.
  
• Precise Capital Management: The position size calculation can be set as a fixed amount (e.g., 100 USDT), a percentage of the total capital, or of the available capital, and includes leverage. These parameters are crucial for a trading bot.
  

3. Detailed Operation

Entry Logic: A position is opened only if the following three conditions are met:

• The market price touches (or closes below/above) the entry RSI band (lower for a buy, upper for a sell).
  
• The WaveTrend indicator is in the oversold zone (for a buy) or overbought zone (for a sell).
  
• The Stochastic RSI indicator is also in the oversold zone (for a buy) or overbought zone (for a sell).
  

The order is placed as a limit order on the RSI band, allowing for execution at the best possible price.

Exit Logic: The primary exit is dynamic.

• For a Long position, the trade is closed when the price reaches the upper exit RSI band.
  
• For a Short position, the trade is closed when the price reaches the lower exit RSI band.
  
• Optionally, a percentage-based Stop-Loss and Take-Profit can be activated for more traditional risk management, although the dynamic exit is the recommended default mechanism.
  

4. Ease of Use and Customization

Despite its internal complexity, the strategy is designed to be user-friendly:

• Clear Settings Panel: Parameters are grouped by function (Long Entry, Long Exit, Quantity, etc.), and each option comes with an explanatory tooltip.
  
• Integrated Display: All key information (performance, current settings) is displayed in clean and discreet tables directly on the chart, allowing you to see at a glance how the strategy is configured.
  
• Total Flexibility: Although default settings are provided, every parameter (RSI lengths, levels, filters) can be adjusted to optimize the strategy on any asset (cryptocurrencies, Forex, indices...) and any timeframe.
  

5. Detailed Guide to User Settings


A comprehensive set of parameters

To offer you complete control and maximum flexibility, the strategy exposes a comprehensive set of parameters. Here is an overview of what you can customize:
Trading Mode and Display

• Trading Mode: Choose to enable only long positions ("Long Only"), only short positions ("Short Only"), or both simultaneously ("Long and Short").
  
• Display: Manage the information panels on the chart. You can opt for a full display, a minimal window showing the profit, or hide all information for a clean chart.
  

Filters Smoothing (StochRSI K)

• Filters Smoothing: This key parameter adjusts the smoothing of the Stochastic RSI. A lower value will make the filter more responsive, generating more signals. A higher value will make it smoother, generating fewer but potentially more reliable signals.
  

LONG Position Settings


Long Only mode

• Entry: Define the RSI length and Oversold level that draw the lower band for long position entries.
  
• Exit: Independently configure the RSI length and Overbought level that draw the upper band for the dynamic position exit.
  
• Options: Optionally enable a percentage-based Take-Profit and/or Stop-Loss.
  

SHORT Position Settings


Short Only Mode

• Entry: Define the RSI length and Overbought level for the upper entry band for short positions.
  
• Exit: Independently configure the RSI length and Oversold level for the lower dynamic exit band.
  
• Options: Just like for long positions, you can enable a percentage-based Take-Profit and/or Stop-Loss.
  

Quantity and Leverage

• Quantity Type: Calculate your position size in three ways: as a fixed cash amount, as a percentage of available capital, or as a percentage of the total account balance.
  
• Amount: Specify the dollar amount or percentage to commit per trade.
  
• Leverage: Set the leverage to be applied. This is crucial for automation.
  

Backtest Period

• Backtest Period: Enable this option to limit the strategy's calculations to a specific time period. This is a powerful tool for testing performance under particular market conditions.
  

Bot Alert Messages

• Bot Alert Messages: This section is dedicated to automation. Customize the exact text messages that will be sent by TradingView alerts for each event (enter long, exit long, etc.).
  

Other Settings (Advanced - Optional)

• Other Settings: This section allows experienced users to fine-tune the confirmation engine. You can adjust the parameters of the WaveTrend and Stochastic RSI oscillators in detail.
  

Spread Calculator (Informative Only)

• Spread Calculator: This handy tool helps you estimate the actual fees of your exchange to run a much more realistic backtest. This panel has no impact on the trading logic itself.
  

Disclaimer
This strategy provides signals based on past market conditions. Past performance is not indicative of future results. Trading involves risk, and it is the responsibility of each user to manage their risk appropriately. It is strongly recommended to conduct thorough backtests and to understand the functioning of each parameter before using this strategy in live conditions or automating it. Take into account transaction fees, spread, and slippage, which can impact real results.