[3Commas] SOL RSI Reversal DCA - Short Strategy by 3Commas
By 3Commas
Performance Metrics
- Author: 3Commas
- Symbol: BYBIT:SOLUSDT.P
- Timeframe: 3 minutes
- Win Rate: 87.0%
- Profit Factor: 1.955
Description
SOL RSI Reversal DCA — Short Strategy🔷 What it does:This is a short-only DCA strategy that fades overbought momentum on SOL / USDT. A short deal opens when the 3-minute RSI(9) crosses down through 80 — a momentum-exhaustion signal after a fast push higher. Up to three averaging orders then fill at fixed deviations ABOVE the base entry (+1%, +2%, +3%) with uniform sizing, pulling the average entry up if price keeps rising. Exit is a 1.3% Take Profit from the average entry with a 0.3% trailing retrace, and a hard 8% Stop Loss caps the downside. - Single base order plus up to three uniform averaging orders on a fixed +1% / +2% / +3% ladder. - Tight 1.3% Take Profit with a 0.3% trailing lock — captures the mean-reversion snap-back, then trails to squeeze a little extra. - Hard 8% Stop Loss closes the trade if the short keeps running against the position — a real, bounded per-trade risk. - Every entry, averaging order, and exit emits a webhook-ready JSON alert payload for direct DCA Bot consumption.🔷 Who is it for: - Intraday traders fading overbought spikes on SOL on lower timeframes. - Bot operators who want to drive a DCA Bot short deal from TradingView alerts with per-event JSON payloads. - Traders who want a mechanical short with a defined stop, modest averaging, and a quick profit target rather than an open-ended hold. - Portfolio operators looking for a high-win-rate, short-side contributor with bounded risk.🔷 How does it work: Entry Trigger: A 3-minute RSI(9) is sampled via request.security with lookahead disabled (no repaint). The base short opens when that RSI crosses DOWN through 80 — i.e., the prior 5m close was ≥ 80 and the current is below it, marking the moment overbought momentum rolls over. Base Order: Sized at 500 USDT default (5% of 10k capital), placed as a Limit order at the signal bar's close (Market toggle available). Averaging Orders (Uniform DCA Ladder): After the base fill, the strategy monitors price deviation above the base entry. Each averaging order has a fixed deviation — +1%, +2%, +3% — with uniform sizing (250 USDT each, half the base). If price rises against the short, each rung adds size and raises the average entry, so a smaller reversal is needed to reach Take Profit. Exit (TP + Trailing): A 1.3% Take Profit below the running average entry arms a trailing exit. Once price trades through the TP level, the strategy tracks the in-favor low and closes when price retraces 0.3% off that low — locking the move while letting it extend. Stop Loss: A hard 8% Stop Loss above the average entry. If price runs against the short past that level, the position closes at market. This is the strategy's defined, bounded per-trade risk.🔷 Why it's unique: - Momentum-Exhaustion Trigger: Rather than shorting any overbought reading, the deal opens specifically on the RSI crossing DOWN through 80 — the rollover moment — which filters out trades that fire while momentum is still climbing. - Defined-Risk DCA: Most martingale DCA shorts run without a stop. This one keeps a modest 3-rung uniform ladder AND an 8% hard stop, so the worst-case loss per deal is bounded and known in advance. - Trailing Take Profit: The 1.3% target arms a 0.3% trailing exit rather than a fixed limit — capturing the reversion snap and then riding any follow-through. - DCA Bot Integration: Every event (base, AO 1–3, exit) emits a fully-formed JSON alert payload. Connect one alert to a DCA Bot's webhook URL and the strategy drives the bot end-to-end without any glue layer.🔷 Considerations Before Using the Strategy: Sample Size: The backtest produced exactly 100 closed trades — at the commonly used floor for statistical relevance, not far above it. The 87% win rate and 1.955 profit factor reflect favorable conditions over the test window; treat them as indicative rather than a forward-performance guarantee. Extend the window or run across multiple assets to build a larger sample. Lower-Timeframe Sensitivity: The strategy was tested on a 3-minute chart with a 5-minute RSI trigger. Lower timeframes generate more signals but are more sensitive to noise and fees. Confirm the trade frequency and fee drag fit your execution venue before deploying. Stop Loss Discipline: The 8% Stop Loss is the defining risk control. With the base plus three averaging orders, maximum deployed capital is ~1,250 USDT (12.5% of default equity); an 8% stop on that position bounds the worst-case loss to roughly 1% of equity. Keep the stop enabled — removing it converts this into an unbounded martingale short. Trend Risk: Fading overbought conditions works best in ranges and choppy regimes. In a strong, sustained uptrend the short can hit the 8% stop repeatedly. The RSI-crossing-down trigger reduces but does not eliminate this; pair with regime awareness. Commission Calibration: The default 0.06% commission is calibrated for Bybit perpetual taker conditions. Match it to your exchange's actual fees — on a high-frequency lower-timeframe strategy, fee mismatch materially shifts results.🔷 STRATEGY PROPERTIES Symbol: BYBIT:SOLUSDT.P (Perpetual) — portable to any SOL / USDT pair. Timeframe: 3M chart (5M RSI trigger). Test Period: March 16, 2026 — June 8, 2026 (~2.8 months). Initial Capital: 10,000 USDT. Order Size: 500 USDT base (5%) + 3 averaging orders of 250 USDT each (uniform). Max Capital Deployed: ~1,250 USDT per trade (~12.5% of equity). Commission: 0.06% per trade. Slippage: 3 ticks. Margin for Short Positions: 100% (1× leverage, Isolated in source config). Indicator Settings: Default Configuration. Base Order: 500 USDT, Limit by default (Market toggle available). Entry Trigger: 3m RSI(9) Crossing Down 80. Averaging Orders: 3 with fixed deviations +1% / +2% / +3% above base entry; uniform 250 USDT sizing. Take Profit: 1.3% below average entry, with 0.3% trailing. Stop Loss: 8% above average entry (hard close). Strategy: Short Only.🔷 STRATEGY RESULTS ⚠️ Remember, past results do not guarantee future performance. Net Profit: +208.29 USDT (+2.08%) Max Equity Drawdown: 214.94 USDT (2.11%) Total Closed Trades: 100 Percent Profitable: 87.00% (87 / 100) Profit Factor: 1.955🔷 How to Use It: 🔸 Adjust Settings: Open the strategy inputs and review the Base Order Size, the averaging-order count/deviation/size, the RSI trigger level, the Take Profit and Trailing percentages, and the Stop Loss. Defaults mirror the source DCA Bot configuration — recalibrate per asset and timeframe. 🔸 Results Review: This configuration produced 100 closed trades over the test window — at the ~100-trade floor for statistical relevance. Confirm the win rate, drawdown, and trade frequency fit your risk tolerance before deploying capital. 🔸 Create alerts to trigger the DCA Bot: Add one alert on the strategy using "Any alert() function call". Paste the DCA Bot's webhook URL into the alert's Webhook field, and fill the Bot ID, Email Token, and Pair inputs on the script. The strategy will emit JSON payloads for entry, each averaging order, and exit — formatted for direct DCA Bot consumption.🔷 INDICATOR SETTINGS Base Order Size (USDT): USDT amount opened on the initial short. Use LIMIT for Base: Toggle between Limit (default) and Market entry. Averaging Orders per Trade: Number of safety orders (default 3). First AO Size (USDT): Size of each averaging order (uniform by default). Deviation to First AO (%) / Deviation Step Multiplier: Spacing of the AO ladder above base entry. Defaults to uniform +1% steps. Order Size Multiplier: Per-rung size scaling (1.0 = uniform). RSI Timeframe / Length / Crossing Down Level: The 5m RSI(9) crossing-down trigger for the base short. Take Profit (%) / Trailing (%): TP distance below average entry and the trailing retrace that closes the position. Stop Loss (%): Hard stop above average entry. DCA Bot Webhook: Bot ID, Email Token, and Pair fields injected into every alert payload. Visualization: Toggle DCA Ladder, Avg / TP / SL plot lines, fill labels, status table. Brand Watermark: Configurable text, position, size, and transparency.👨🏻💻💭 We hope this tool helps enhance your trading. Your feedback is invaluable, so feel free to share any suggestions for improvements or new features you'd like to see implemented.__The information and publications within the 3Commas TradingView account are not meant to be and do not constitute financial, investment, trading, or other types of advice or recommendations supplied or endorsed by 3Commas and any of the parties acting on behalf of 3Commas, including its employees, contractors, ambassadors, etc.