The Relative Strength Index (RSI) bot buys an asset when it goes below the defined RSI levels, with the dollar cost averaged by buying more if the price drops further. It sells when the profit target or stop loss level is reached. The RSI indicator ranges from 0 to 100. When the indicator hits a low point, this means the asset price has decreased and it is a good time to buy; when the indicator is high, that is a sign that the asset is expensive and it is now a good time to sell. In general, it is understood that 70 or above is "high" (signifying to sell), while 30 is the "low" point, and a sign to buy.
While trading on a crypto exchange, the most popular method is with multi-level RSI. CryptX Terminal supports up to 10 RSI levels. It will start from the highest Level (10) and will buy the asset after the indicator crosses each level, from top to bottom. If the price is falling quickly, the bot might jump several levels.
Let’s look at a 4-Level RSI configuration. Chose your exchange account and a pair for trading, for example, BTC-USD. Let's say you want to buy 1 BTC. Now determine how much of the chart to look at for each interval, such as 15 Minutes. And then indicate how many 15 Minutes intervals should be observed, for example, 14. Now, indicate the levels and how much should be brought at each level. Your configuration could look something like this:
- RSI Level 1 = 60; Level 1 Amount = 0.2 BTC
- RSI Level 2 = 50; Level 2 Amount = 0.2 BTC
- RSI Level 3 = 40; Level 3 Amount = 0.25 BTC
- RSI Level 4 = 30; Level 4 Amount = 0.35 BTC
- If the RSI indicator is 55, the bot will place a Level 1 order, because 55 is lower than 60.
- If the RSI indicator starts to decrease, the bot will wait until the indicator crosses 50; once that happens, a Level 2 order will be placed.
- If the RSI indicator goes to 60 or higher, the bot will not trade.
- If market sell orders increase, the price could fall quickly. Once it crosses 50, it could quickly cross 30 within your defined period. In that case, the bot will skip the Level 3 order and start trading at Level 4.
Give your Bot a unique name.
Choose the exchange account where you want the bot to trade.
You will see only exchanges that you have linked with our system.
See instructions for connecting to external exchanges.
Determine the pair the bot will trade with; the first one is the asset to acquire.
Choose Chart Interval
Select the chart time frame for the bot examine. Strategy calculations and buy/sell decisions are made at the closing price of each interval. Smaller time frames result in more trades, while larger time frames will produce fewer trades.
Enter the number of chart intervals to use for RSI period calculations.
RSI Level 1 / 2 / 3 / etc.
Begin by specifying the first RSI level for buy signals. For example, the bot will buy the Level 1 Buy Amount if the RSI is below this value.
Level 1 / 2 / 3 / etc. Buy Amount
Enter the amount of base currency per trade to buy at the first, second, and third RSI levels.
Profit & Loss Settings
Take Profit Signal
Enter the profit % you want to gain from your original holdings that tells the bot to sell the accumulated assets.
Stop Loss Signal
Enter the loss % of your original holdings that tells the bot to close (sell) the open position and avoid further losses.
Click the Optimize Parameters link to have the bot determine the best parameters based on the pair you want to trade. You can also set other parameters manually, and it will optimize only the locked fields.
Running Your Bot
Once you have configured the bot, click Save Bot. If there are any errors, correct them and save the bot again.
When your bot is ready, click Start Bot.
You can monitor your bot's status from the Dashboard. If at any time you want to adjust the bot's configuration, stop the bot first, then click the Edit button.