How DBOT works

DBOT is a fully automated trading bot that buys and sells leveraged ETFs on your behalf — no clicking, no chart-watching, no guesswork.

It trades pairs of ETFs that move in opposite directions:

• •The Bull ETF goes up when the market rises
• •The Bear ETF goes up when the market falls

DBOT rotates between them to capture profit in both directions — like a surfer who can ride waves both ways.

Before every trade, multiple independent checks must all agree — price momentum, volume activity, market regime, and trend confirmation must align before a single dollar is placed.

Paper Mode lets you run the entire system with simulated money so you can watch it work and build confidence before risking real funds.

DBOT uses RSI (Relative Strength Index) to measure whether a price has been pushed too far in one direction — like a rubber band stretched too tight.

• •RSI very low → price pushed down too hard → "oversold." Likely to snap back up. Signal to BUY.
• •RSI very high → price pushed up too hard → "overbought." Likely to pull back. Signal to SELL.

But a single reading isn't enough. Before DBOT buys, ALL of these must be true simultaneously:

1. RSI is below the buy threshold (oversold)
2. RSI is ticking upward — momentum is reversing
3. RSI has stayed oversold for several consecutive bars
4. Trading volume is above average
5. The market is not in a strong directional trend

All five must say yes. This multi-gate approach keeps the bot from entering on weak, noisy, or trend-fighting signals.

Three independent exit triggers. Whichever fires first causes an immediate sell:

1. RSI Rotation Signal

When RSI swings to the opposite extreme, the bot sells the current position and prepares to rotate into the inverse ETF. This is the primary sell mechanism — it captures the bulk of each swing.

2. Trailing Stop-Loss

From the moment a position is opened, DBOT tracks the highest price reached. If the price falls too far below that peak, it sells.

Example: Buy at $100 → price climbs to $120 → bot tracks $120 as the peak → price drops below the stop threshold → immediate sell, locking in gains and capping loss from the top.

3. Max Hold Time (Bear ETF only)

Inverse ETFs suffer from daily rebalancing decay — holding them too long erodes value even if the market cooperates. DBOT automatically exits bear positions after a configurable time limit to prevent decay from eating into profits.

DBOT keeps your money working — sitting in cash means missing opportunities. The cycle:

1. Conditions met → Buy Bull ETF, ride the recovery
2. RSI overbought → Sell Bull, rotate to Bear
3. Conditions met → Buy Bear ETF, profit from the decline
4. RSI overbought → Sell Bear, rotate back to Bull

Rotations are instant — no cooldown. But if the bot would re-buy the same ETF it just sold (not a rotation), it waits a cooldown period first. If that last trade was a loss, the cooldown doubles.

DBOT never goes all-in. Each trade uses a fraction of your available buying power, leaving room for follow-up entries if a better signal appears later in the day.

Your daily buying power is set at market open. Each trade uses BP ÷ 3 as the base amount. When RSI is deeply oversold (a stronger signal), the position scales up — but never beyond 50% of remaining BP.

Why not go all-in? RSI often dips, bounces, then dips deeper. If you spent everything on the first dip, you'd have nothing left for the better entry. This system automatically saves powder for those moments.

Five automated guardrails work simultaneously to prevent catastrophic losses. None of them can be disabled.

Trailing stop-loss

Tracks peak price from entry. Exits if price falls too far below the peak. Prevents a winning trade from turning into a big loss.

Daily loss circuit breaker

If portfolio value drops more than 3% from the day's opening value, ALL trading halts until the next market open. Caps damage from rate decisions, earnings shocks, and flash crashes.

Consecutive stop-loss cooldown

If the stop-loss fires 3 times in a row, the bot pauses for 2 hours. Back-to-back stops mean a fast directional move — a terrible environment for mean reversion.

Broker error circuit breaker

5 consecutive API failures trigger a 10-minute pause. Prevents the bot from making blind decisions on stale data.

Live execution telemetry

Buy count, sell count, errors, slippage — all visible in the sidebar in real time. You always know exactly how your fills are performing.

DBOT doesn't just use one set of "magic numbers" — it tunes its parameters using a 3-tier hierarchical optimization across all 19 ETF pairs:

Tier 1 — Global anchor

Coordinate descent on pooled data from every candidate pair. Finds universal settings that work across the universe.

Tier 2 — Cluster anchor

Bounded refinement per regime cluster (equity 3×, commodity, bonds, crypto). Each cluster's params can drift from the global anchor, but only within evidence-supported limits.

Tier 3 — Per-pair nudge

Tighter optimization per pair, only kept if the nudged params beat the cluster anchor on a separate validation window. Forces every per-pair adjustment to justify itself.

Every tier evaluates on a training slice, validates on a held-out slice, and is finally scored on a fresh out-of-sample window the optimizer never saw. This three-window split is what prevents over-fitting to one specific market regime.

DBOT supports 19 leveraged ETF pairs across equity 3×, commodity, bonds, and crypto. The recalibration pipeline ranks all 19 by out-of-sample profit each week, so you can pick the pair that's been performing best in current market conditions.

The default starting pair is TQQQ/SQQQ (Nasdaq 100 at 3× leverage) — highest liquidity, tightest spreads, most reliable RSI signals.

Regular US stock market hours: 9:30 AM – 4:00 PM Eastern. Your local timezone is auto-detected from your machine clock.

Every few minutes during market hours, the bot fetches fresh price data, computes signals, checks exit conditions, and places orders if all the buy gates align. When RSI is near a threshold, it switches to checking every minute (Fast Mode) to catch the exact bar a signal fires.

Weekends, federal holidays, and early-close days are handled automatically.

Backtests aren't guarantees. Even a strategy with a real edge has losing weeks. DBOT is designed to survive bad weeks — five layers of stops, daily loss caps, and broker error breakers — but no bot can promise profit.

The honest expectation: meaningful drawdowns will happen. The reason DBOT can still come out ahead over time is that the rally weeks tend to be larger than the decline weeks, and the risk controls cap the downside on the bad ones.

Always start in paper mode. Always start small with real money. Always trade with funds you can afford to lose.