NotAnotherSMAOffsetStrategy_uzi: Strategy Explained
1. What Does This Strategy Do?
One-Line Summary
"Buy when price dips in an uptrend, sell when it recovers." Like buying groceries on sale — you only buy when the price is below what you consider fair value, and you only sell when it's back to normal or above.
Name Meaning
The name "NotAnotherSMAOffsetStrategy_uzi" means this isn't just another basic MA strategy — it has the "offset" innovation built in, and "_uzi" is just a version identifier.
2. Core Logic in Plain English
When to Buy?
The strategy has two buy conditions — satisfy either one and it buys:
Condition 1: ewo1 (Trend Pullback)
Think of it like this: "The market's going up, but it just took a breather. Buy now!"
Requirements:
- RSI(4) < 35 — short-term price dropped quickly
- Price < EMA(14) × 0.975 — 2.5% below the average
- EWO > 2.327 — big trend is still UP
- RSI(14) < 69 — not overheated
- Volume > 0
Condition 2: ewolow (Extreme Oversold)
Think of it like this: "Everyone's panicking and selling. Be greedy when others are fearful."
Requirements:
- RSI(4) < 35 — short-term price dropped fast
- Price < EMA(14) × 0.975 — 2.5% below average
- EWO < -20.988 — market is deeply depressed
- Volume > 0
3. When to Sell?
Two sell conditions — satisfy either one and it sells:
Condition 1: Made Good Profit, Trend Still Up
Think: "Price recovered nicely, momentum still healthy — lock in the gains!"
Requirements:
- Price > SMA 9
- Price > EMA(24) × 0.997
- RSI > 50
- Fast RSI > Slow RSI
- Volume > 0
Condition 2: Momentum Running Out
Think: "Price shot up fast but now stalling — take the money before it drops more!"
Requirements:
- SMA 9 rose sharply (quick surge)
- Price < HMA 50
- Price still above EMA baseline
- Fast RSI > Slow RSI
4. Risk Control
Stop-Loss: 7% Maximum
Bought at $100 → drops to $93 → forced sell. 7% is the final safety net.
Trailing Stop: Smart Profit Locker
- Kicks in after 3% profit
- Follows price upward at 0.5% below peak
- Example: Bought $100 → $103 activates → $110 peak → $109.45 stop → sells at $109.45, locking in 9.45% profit
Take-Profit Table
| Holding Time | Target |
|---|---|
| Immediate | 21.5% |
| 40 min | 3.2% |
| 87 min | 1.6% |
| 201 min | Break-even |
Only Sell When Profitable
Won't execute sell signals unless you're up 0.5%+. This prevents panic selling when you're slightly down.
5. Parameters
| Parameter | Default | What It Does |
|---|---|---|
| low_offset | 0.975 | Buy when price is 2.5% below MA |
| ewo_high | 2.327 | Must be in uptrend (EWO positive) |
| ewo_low | -20.988 | Only for panic buys (EWO deeply negative) |
| rsi_buy | 69 | RSI must be below this to buy |
| high_offset | 0.991 | Sell when price is slightly above MA |
6. Best Markets
| Market | How It Performs |
|---|---|
| Uptrend with pullbacks | ★★★★★ Great |
| Deep crash | ★★★★ Good for ewolow |
| Ranging (no direction) | ★★★ Okay |
| One-sided crash | ★★ Tricky |
| Dead quiet | ★ Boring |
7. Summary
"Buy when price is below average in a confirmed uptrend, sell when it recovers or momentum fades. 7% stop-loss and smart trailing protect your capital."
This strategy works best for:
- Trend-following traders
- Short-to-medium term holds
- People who understand technical indicators
- Those who can accept moderate drawdowns
Key rules:
- Backtest first
- Start small
- Monitor and adjust
- Trade only what you can afford to lose
Good luck!