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

1. General Concept and Philosophy

Dynamic RSI (LITE) strategy was designed for systematic traders, especially 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 TopBot 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 design that is 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. 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.

• Compatible Alert Messages: Messages for entries and exits (Long/Short) are formatted to be compatible with automated trade execution platforms.
  

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.
  
• The dynamic exit is the default management mechanism of the strategy.
  

4. Ease of Use and Display

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

• Integrated Display: Key performance information is displayed in clean and discreet tables directly on the chart, allowing you to see the strategy's results at a glance.
  

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 the strategy before using it in live conditions or automating it. Take into account transaction fees, spread, and slippage, which can impact real results.