3Commas Dollar Cost Averaging (DCA) Trading System
As investors, we often face the dilemma of wanting high stock prices when we sell but not when we buy. There are times when this dilemma causes investors to wait for prices to fall, thereby potentially missing out on the opportunity for continued growth. Thus, investors are led away from the markets and become entangled in the slippery slope of market timing, which is not advisable for a long-term investment strategy.
Skyrex has developed a sophisticated trading system based on dollar cost averaging as interpreted by Quick Fingers Luc. It is a combination of strategies that allows you to systematically accumulate assets by investing large sums of money in a specific market cycle of global support levels. Dollar cost averaging can reduce overall impact volatility prices and reduce the average cost of the asset, so even during market downturns only a small rebound is required to achieve take profit.
The strategy script tracks price movement on the chart and identifies bottoms as they form. When the bases are reached, the script provides input actions. During the development of price action, the value of the asset may decrease, and thus the script will perform safety entries at each subsequent accumulation level. When the weighted average entry price reaches the target profit, the script will perform a take profit action.
The bases are identified as reversals minimums in fractal models and are tested by adjustable decline/increase percentages to ensure the significance of the identified bases. To qualify the minimum reversal, the indicator will perform the following check:
- Make sure rate of change drop-out and failure prices exceed a specified threshold value.
- Make sure volume at the bottom reference point is above the moving average volume(using the given length).
- Make sure volume is a given ratio of the magnitude above the moving average volume .
- Ensure that the potential new base is not too close to the previous range by using a specified percentage price difference threshold.
Fractal pattern is a repeating pattern on a price chart that can predict reversals among larger, chaotic price movements.
These basic fractals consist of five or more bars. The rules for defining fractals are as follows:
- Bearish a tipping point occurs when there is a pattern with the highest high in the middle and two low highs on either side.
- Bullish a reversal occurs when there is a pattern with the lowest low in the middle and two higher lows on either side.
The basic dollar cost averaging approach is enhanced by the implementation of customizable accumulation levels to allow them to be set at specific global support and ratio levels volume Martingale to increase the averaging effect. In accordance with the Quick Fingers Luc trading principles, we have added validation volume base, since it allows us to confirm that the market is resistant to further price reductions.
The strategy supports traditional and cryptocurrency spot,futures, options and margin trading exchanges. It definitely works with currencies BTC, USD, USDT, ETH and BNB. Best used with 1H time frame charts and limit orders. The strategy can and should be customized for each specific asset in accordance with its global levels support and resistance and price action cycles. You can change risk management levels and settings to improve performance
The difference between the main script and this interpretation is that this strategy is specifically designed for 3Commas bots
How to use?
1. Apply the strategy to the trading pair you are interested in using the 1H timeframe
2. Customize your strategy: change layer values, order multiples, and take profit/stop loss values according to the current stage of the market cycle
3. Set up a TradingView alert to trigger when the strategy conditions are met
4. The strategy will send position entry and exit alerts that can be applied to your portfolio using external trading platforms
5. Update settings as market conditions change with backtesting monthly period
If you want to access the script, you should contact us via private message or send an email to [email protected]