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Forex Trading Bot

A Better DCA Forex Trading Strategy

Usually, when someone thinks of Dollar Cost Averaging, it simply means buying a forex on payday. However, the downside to this simplicity is that you may buy at a high. Statistically, there is a 50% chance of you making this “mistake”.

What if there is a better DCA strategy that aims to only buy when the forex that you have painstakingly researched tanks? Is it not better to buy when everyone is selling? If you are to do this manually, the fear would have gripped you and prevents you from buying. This is why entrusting such endeavour to a forex trading bot is apt.

With ForexHero, you can configure the DCA bot to buy when the forex robot hits an oversold level. 

In this tutorial, we will show how to configure the bot to do this – buy when a forex instrument enters the oversold region. For simplicity, we will use the RSI indicator. Please note that you will need a Premium or Professional plan to do this in ForexHero.

Let’s get started. We will use the web app for this tutorial.

I. Firstly, login to your ForexHero account

II. Select the exchange you would like to trade on – Either Paper or CityIndex

III. Click on the Bots button on the left menu

IV. Click on the New Bot button. Then click on DCA as shown in the image below:


V. Choose the forex you would like to DCA on

VI. In Trade Parameters, set the Fund Allocation. One thing to note – if you check the box “No Limit”, the bot will spend X USD (your Per Order Amount) for each order until you run out of funds. Determine how much of your capital you want the bot to buy for each order – the Per Order Amount.

VII. Select Market Order Type.

VIII. Go to Entry Conditions. The fun starts here. Select Indicator from the drop down menu

DCA Trading Bot Settings

IX. Click the blue Add Indicator button and select RSI. Once you are good at this, your secret sauce will come from configuring the specific RSI values. For now, you can just use the standard RSI trigger values provided by ForexHero.

X. For Trading Frequency, this is correlated to your risk profile. The shorter the TF, the faster the bot will monitor the market data and hence, more orders will occur. If you have no idea, choose 15 m for now.

XI. For the exit condition, give your preferred Take Profit level. For this example, we use 10%.

That’s all! Click the Create Bot button and ForexHero will monitor the forex instrument and buy when the instrument hits the oversold region.