[3Commas] AMZN RSI Oversold Doubling DCA - Long Strategy by 3Commas
By 3Commas
Performance Metrics
- Author: 3Commas
- Symbol: BITGET:AMZNUSDT.P
- Timeframe: 4 hours
- Win Rate: 90.9%
- Profit Factor: 21.997
Description
AMZN RSI Oversold Doubling DCA — Long Strategy🔷 What it does:This is a long-only DCA strategy with a selective oversold entry and an aggressive martingale safety-order ladder. A long entry opens only when the 4-hour RSI falls below 28 (deep oversold). Five safety orders then fire at fixed deviations from base entry (−2%, −5%, −9.5%, −16%, −25%) with sizes doubling on every rung ($1,000 → $2,000 → $4,000 → $8,000 → $16,000). Exit is a fixed 3% Take Profit from average entry. No trailing, no Stop Loss. - Single base order with up to five safety orders on a non-uniform fixed-deviation ladder reaching −25% below base. - Aggressive size doubling: 1 / 2 / 4 / 8 / 16 / 32 unit progression from a $500 base. - Tight 3% Take Profit from average entry — the averaging ladder pulls the average down so a small recovery closes the deal in profit. - Single entry filter: deeply oversold 4h RSI — a clean, selective trigger. - Every entry, safety order, and exit emits a webhook-ready JSON alert payload for direct DCA Bot consumption.🔷 Who is it for: - Swing traders looking for long exposure on AMZN when it prints deep oversold readings on the 4h. - DCA-style traders who want a disciplined averaging ladder that only deepens on serious adverse moves. - Bot operators who want to drive a DCA Bot via webhook with per-event JSON payloads tagged for each base / safety order / exit action. - Traders comfortable with a doubling martingale ladder deploying up to ~31.5% of equity per trade in exchange for a high deal-close rate.🔷 How does it work: Entry Filter: A 4-hour RSI(14) is sampled via request.security with lookahead disabled (no repaint). The entry gate fires when RSI is below 28 (deep oversold) at host-bar close, filtering out shallow dips. Base Order: Sized at 500 USDT default (0.5% of 100k capital). Configurable as Market (default) or Limit at the bar's close. Safety Order Ladder (Fixed Deviations, Doubling Sizes): After the base fill, the strategy monitors price deviation against the base entry. Each safety order has its own fixed deviation from base — not a cumulative ladder. AO1 fires when close ≤ base × 0.98 (−2%); AO2 at −5%; AO3 at −9.5%; AO4 at −16%; AO5 at −25%. Sizes double from a 1,000 USDT first AO: 1,000 / 2,000 / 4,000 / 8,000 / 16,000. Exit: A fixed 3% Take Profit above the running average entry. When close hits the TP target, the position closes at market. No trailing, no Stop Loss. Why the Ladder Works: Each doubling safety order weights the average entry heavily toward the lowest fills. After several rungs fill, the average sits well below base, so a modest 3% bounce off the lows is enough to close the whole deal in profit — the core mechanic of a doubling DCA bot.🔷 Why it's unique: - Selective Oversold Entry: The deal opens only on a deep 4h RSI < 28 print, so capital is committed at genuinely stretched conditions rather than on every dip. - Non-Uniform Fixed-Deviation Ladder: Most published DCAs use formula-based ladders (step × multiplier). This one exposes each AO deviation as a direct input, allowing an asymmetric ladder (2% / 5% / 9.5% / 16% / 25%) where deeper safety orders trigger only on serious adverse moves and the lowest rung sits a full 25% below base. - Doubling Martingale: 1 / 2 / 4 / 8 / 16 / 32 size progression is more aggressive than typical 1.05–1.5× compounding. Capital deployed scales exponentially if the position runs adverse, but is hard-bounded by the 5-rung ladder. - Tight Recovery Target: The 3% Take Profit on the averaged-down entry closes deals quickly once price stabilizes, keeping the win rate high and holding times short relative to the depth of the ladder. - DCA Bot Integration: Every event (base, AO 1–5, 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 22 closed trades — below the ≥100 floor typically used for statistical confidence. The 90.91% win rate and high profit factor reflect favorable conditions over the test window and the averaging mechanic, not a deterministic edge. Treat these numbers as indicative of how the ladder behaves, not as a forward-performance guarantee. Extend the test window or run the strategy across multiple assets to build a larger sample before committing capital. Aggressive Capital Deployment: If all five safety orders fill, total deployed capital reaches $31,500 = ~31.5% of default 100k equity — above TradingView's typical 5–10% per-trade band. Size the base and AO inputs down to dial per-trade risk into a safer range. The doubling martingale amplifies both upside (when price recovers) and risk (if the lower bound breaks). No Stop Loss: There is no exit on adverse moves below the −25% AO5. If price keeps falling below the lowest safety order, the position holds unhedged until either price recovers to the 3% TP target or the user intervenes. The structural risk cap is the bounded 5-rung position ladder; if a hard exchange-side stop is required, layer it on the bot directly. Martingale Tail Risk: A doubling ladder that bottoms out at −25% is built for mean-reverting moves. A sustained directional collapse below −25% leaves the full position open with no further averaging available — the single largest risk in any martingale DCA. Choose assets and regimes where deep-but-recoverable dips are the norm. Commission Calibration: The default 0.06% commission is calibrated for Bitget perpetual taker conditions. If running on a different venue, update the commission input accordingly.🔷 STRATEGY PROPERTIES Symbol: BITGET:AMZNUSDT.P (Perpetual) — portable to any AMZN / USDT pair. Timeframe: 4H Test Period: August 26, 2025 — June 5, 2026 (~9.4 months). Initial Capital: 100,000 USDT. Order Size per Trade: 0.5% of Capital base + 5 safety orders with size doubling. Max Capital Deployed: $31,500 per trade (~31.5% of equity). Commission: 0.06% per trade. Slippage: 3 ticks. Margin for Long Positions: 100%. Indicator Settings: Default Configuration. Base Order: 500 USDT, Market by default (Limit toggle available). Take Profit: 3.0% above average entry (no trailing). Stop Loss: None — bounded position size is the structural risk cap. Entry Filter: 4h RSI(14) Less Than 28. Safety Orders: 5 with fixed deviations −2% / −5% / −9.5% / −16% / −25% from base entry; sizes 1k / 2k / 4k / 8k / 16k USDT. Strategy: Long Only.🔷 STRATEGY RESULTS ⚠️ Remember, past results do not guarantee future performance. Net Profit: +807.71 USDT (+0.81%) Max Equity Drawdown: 199.15 USDT (0.20%) Total Closed Trades: 22 Percent Profitable: 90.91% (20 / 22) Profit Factor: 21.997🔷 How to Use It: 🔸 Adjust Settings: Open the strategy inputs and review the Base Order Size, the five AO deviations and sizes, the RSI entry level, and the Take Profit percentage. Defaults are calibrated for AMZN 4h — recalibrate when the asset's volatility regime shifts. 🔸 Results Review: The backtest produced 22 closed trades — a modest sample. Treat the metrics as indicative of the ladder's behavior, not a forward-performance guarantee. Confirm that the trade frequency and the doubling ladder's max deployment 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 safety order, and exit — formatted for direct DCA Bot consumption.🔷 INDICATOR SETTINGS Base Order Size (USDT): USDT amount opened on the long entry. Use LIMIT for Base: Toggle between Market (default) and Limit at bar close. AO1–AO5 Deviation (%): Fixed distance from base entry where each safety order becomes eligible. Non-uniform by design, reaching −25% at AO5. AO1–AO5 Size (USDT): USDT amount of each safety order. Doubles at each rung by default. RSI Timeframe / Length / Less Than: 4h RSI filter for the base entry. Take Profit (%): Fixed distance above average entry where the long closes for profit. DCA Bot Webhook: Bot ID, Email Token, and Pair fields injected into every alert payload. Visualization: Toggle AO Ladder, Avg / TP 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.