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NotAnotherSMAOffsetStrategyX1: Strategy Explained

1. What Does This Strategy Do?​

One-Line Summary​

"Buy low in uptrends, sell high when conditions change." Like smart shopping — buy when discounted, sell when priced up. Only buys in confirmed uptrends.

Name Meaning​

"NotAnotherSMAOffsetStrategyX1" = "Not just another SMA Offset Strategy, version X1" — the developer wanted to distinguish it from basic MA crossover strategies.

2. Core Logic​

When to Buy? Two Main Signals​

Signal 1: ewo1 (Trend Pullback)

Conditions:

  1. RSI(4) < 35 — short-term oversold
  2. Price < EMA(14) × 0.975 — 2.5% below average
  3. EWO > 2.327 — strong uptrend
  4. RSI(14) < 69 — not overheated
  5. Volume > 0

Plain English: "Uptrend but pulled back, RSI shows oversold — buy!"

Signal 2: ewolow (Reversal)

Conditions:

  1. RSI(4) < 35
  2. Price < EMA(14) × 0.975
  3. EWO < -19.988 — deeply bearish
  4. Volume > 0

Plain English: "Market crashed, everyone panicking — buy the panic!"

3. When to Sell?​

Condition 1: Price Above HMA​

  • Price > SMA 9
  • Price > EMA(24) × 0.997
  • RSI > 50
  • Fast RSI > Slow RSI

Plain English: "Rose to target, momentum still strong — take profit."

Condition 2: Price Below HMA​

  • Price < HMA 50
  • Price > EMA(24) × 0.991
  • Fast RSI > Slow RSI

Plain English: "Trend weakening but still profitable — lock in gains."

Exit Confirmation​

If HMA 50 still clearly above EMA 100 BUT price dipped below EMA 100 — don't sell! Trend still intact.

4. Risk Control​

Stop-Loss​

  • -35% hard stop — maximum loss per trade

Trailing Stop​

  • Activates at 3% profit
  • Follows price up at 0.5% below peak

Tiered Selling​

  • 12 profit tiers (~90 conditions per tier)
  • Higher profit = looser exit conditions

ROI Table​

  • Immediate: 21.5%
  • 40 min: 3.2%
  • 87 min: 1.6%
  • 201 min: Break-even

5. Parameters​

ParameterDefaultMeaning
low_offset0.975Buy when 2.5% below MA
ewo_high2.327Must be in strong uptrend
ewo_low-19.988Panic buy threshold
rsi_buy69RSI must be below this
high_offset0.991Sell when above MA
high_offset_20.997Sell when above MA

6. Summary​

"Buy when price is cheap in an uptrend, sell when it recovers. Dynamic tiered selling locks in profits at every level."

Best for: Medium-term traders who understand indicators and can monitor strategy performance. The -35% stop-loss is wide, so position sizing matters.

Key: Backtest → Paper trade → Small live → Monitor & adjust.

Trade only what you can afford to lose.