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SMAOPv1_TTF Strategy: The SMA "Discount Hunter" with a "Thermometer"

Nickname: TTF Trend Catcher
Specialty: SMA Offset Hunter + TTF Thermometer Combo
Timeframe: 5 minutes (main) + 1 hour (auxiliary)

I. What Is This Strategy?​

Simply put, SMAOPv1_TTF is:

  • Uses SMA as a "discount line" - buy when price drops to a certain percentage below
  • Uses EWO to judge "which way the wind is blowing" - avoid trading against the trend
  • Uses TTF as a "thermometer" - when it gets too hot, run!

Like grocery shopping 🥬: See vegetables normally 10 bucks now at 2% off (SMA offset), confirm it's a normal discount not expiring soon (EWO), buy! Then wait until it rises a bit, thermometer shows "too hot" (TTF), sell quickly!

II. Core Configuration: Simply Put, "Three Safety Fuses"​

Take Profit Rules (ROI Table)​

Immediately   10% profit
30 minutes    5% profit
60 minutes    2% profit

Translation: Target 10% right after buying, get more anxious the longer you hold, after 60 minutes even 2% is fine to sell.

Stop Loss Rules​

Fixed stop loss: -10%
Trailing stop: Activates after profit > 1%, locks 99.9% profit

Translation: Accept 10% loss. But after making 1%, start "survival mode", follow the price up, only give back 0.1% then run.

III. 2 Buy Conditions: Categorized for You​

This strategy doesn't have many buy conditions, just 2, but cleverly designed:

🎯 Type 1: Trend Pullback Buy (Condition #1)​

Core Logic: Pullback opportunities in an uptrend

Plain English:

"The wind is still blowing east (EWO high), price pulled back a bit (SMA offset), and not too hot (RSI not high), perfect time to get on!"

Representative Condition: Condition #1

Detailed Script:

  • Price 2.2% below SMA (offset 0.978)
  • EWO > 5.638 (strong trend)
  • RSI < 61 (not overheated)
  • Has volume

📉 Type 2: Oversold Bounce Buy (Condition #2)​

Core Logic: When it drops too much, it should bounce

Plain English:

"It's crashed! EWO is almost at -20, this price is a steal, pick some up and try!"

Representative Condition: Condition #2

Detailed Script:

  • Price 2.2% below SMA (offset 0.978)
  • EWO < -19.993 (extremely oversold)
  • Has volume

IV. Protection Mechanism: 3 Layers of "Anti-Pit Net"​

Each buy condition has triple protection, like three safety airbags:

Protection TypeFunctionPlain English
EWO FilterJudge trend direction"Don't run against the wind!"
RSI FilterJudge overbought/oversold"Don't chase highs!"
Trailing StopLock in profits"Made money? Run, don't be greedy!"

V. Sell Logic: More Sophisticated Than Buying​

5.1 ROI Take Profit: The Longer, The More Anxious​

Just bought  → Target 10%
30 minutes   → Target drops to 5%
60 minutes   → Target drops to 2%

Plain English:

  • Just bought: I want 10%!
  • 30 minutes: Fine, 5% is okay...
  • 60 minutes: Please, 2% and I'll sell!

5.2 Trailing Stop: Follow the Rise​

Profit reaches 1% → Activate trailing stop
Stop line follows up → Only give back 0.1% then run

Plain English: Made money? Don't let it get away. The stop line climbs with the price!

5.3 Two Sell Signals​

Classic Lines:

  1. Signal #1: SMA Breakout Sell

    "Price is 0.6% above SMA (offset 1.006), too expensive, sell!"

  2. Signal #2: TTF Overheat Sell

    "TTF crossed above 100, buying power too strong, due for a pullback, take profits!"

VI. This Strategy's "Personality Traits"​

✅ Pros (Praise Time)​

  1. Dual Entry Opportunities: Can chase trend pullbacks AND catch oversold bounces, won't miss opportunities
  2. Good Protection: EWO + RSI + trailing stop, triple protection
  3. Flexible Exit: TTF indicator provides independent exit signal, not just stuck on ROI
  4. Tunable Parameters: 11 optimizable parameters, fits various market conditions

⚠️ Cons (Roast Time)​

  1. Too Many Parameters: 11 parameters, headache to tune, easy to overfit 🤣
  2. TTF Not Common: Not many people use this indicator, limited community validation
  3. Ranging Markets Will Lose: In sideways consolidation, offset strategies easily get slapped repeatedly
  4. 1h Info Layer Barely Used: Defined but not actually applied much in code, kind of wasteful

VII. Applicable Scenarios: When to Use It?​

Market EnvironmentRecommended ActionReason
Uptrend✅ Go for itSMA offset catches pullbacks, TTF timely exits
Ranging Market⚠️ Light positionEasy to get slapped repeatedly, reduce position
Downtrend❌ Don't useCatching bottoms easily gets buried
High Volatility Coins✅ WorksTrailing stop protects profits

VIII. Summary: How's This Strategy Really?​

One-Line Review​

"Buy SMA discounts, sell on TTF overheat, watch wind direction with EWO - solid trend-following strategy"

Who Should Use It?​

  • ✅ Experienced traders familiar with SMA strategies
  • ✅ Cautious types who like multi-indicator confirmation
  • ✅ Quant enthusiasts willing to spend time tuning parameters
  • ✅ Players trading trending coins

Who Should NOT Use It?​

  • ❌ Complete beginners (too many parameters, easy to get dizzy)
  • ❌ Lazy people who just want to copy (needs tuning per coin)
  • ❌ Traders mainly in ranging markets
  • ❌ People who don't like trailing stops

My Suggestions​

  1. Backtest First: Verify parameter effectiveness with historical data
  2. Small Position Live Test: Run 1-2 coins first, observe performance
  3. Tuning Advice: Set base_nb_candles_buy to 20-30 for more stability
  4. Watch TTF: This indicator is the key selling point, understanding it helps with timing exits

IX. What Markets Can This Strategy Make Money In?​

9.1 Core Logic: Three-Piece Combo​

SMAOPv1_TTF is a "SMA offset + trend filter + thermometer exit" combo strategy.

Its Money-Making Philosophy: "Buy quality goods at discount, sell when temperature gets high"

  • SMA Offset: Wait for price to drop a certain percentage below SMA before buying, like getting a "discount"
  • EWO Filter: Ensure the wind direction is right, don't go against the trend
  • TTF Thermometer: When buying power gets too strong, take profits timely, don't be too greedy

9.2 Performance in Different Markets (Plain English Version)​

Market TypePerformance RatingPlain English Explanation
📈 Uptrend⭐⭐⭐⭐⭐Pullback buy + TTF profit taking, perfect combo
🔄 Ranging Market⭐⭐☆☆☆SMA lines cross back and forth, high chance of getting slapped
📉 Downtrend⭐⭐☆☆☆Catching bottoms easily gets buried, use with caution
⚡ High Volatility⭐⭐⭐☆☆Trailing stop helps, but might get shaken out

One-Line Summary: Best in uptrends, be careful in ranging markets!

X. Want to Run This Strategy? Check These Configs First​

10.1 Trading Pair Configuration​

Config ItemSuggested ValueRoast
Number of pairs5-20Too many to monitor
Coin selectionTrending coins mainlyDon't pick ranging coins
Timeframe5mDefault is fine

10.2 Key Config File Settings​

# Buy parameters (default values)
base_nb_candles_buy: 16      # MA period
low_offset: 0.978            # Offset ratio (2.2% discount)
ewo_high: 5.638             # EWO high threshold
ewo_low: -19.993            # EWO low threshold
rsi_buy: 61                 # RSI upper limit

# Sell parameters
base_nb_candles_sell: 49
high_offset: 1.006          # Offset ratio (0.6% premium)
ttf_upperTrigger: 100       # TTF trigger line

10.3 Hardware Requirements (Important!)​

Trading PairsMinimum MemoryRecommended MemoryExperience
1-10 pairs2GB4GBSmooth
10-50 pairs4GB8GBOkay

Warning: This strategy has moderate computation, old computers can run it too, just don't open too many pairs 😅

10.4 Backtesting vs Live Trading​

Backtesting and live trading may differ, main reasons:

  • Slippage: Actual buy price may differ from expected in extreme markets
  • TTF Extremes: May trigger earlier or later in live trading vs backtesting

Recommended Process:

  1. Backtest to find optimal parameters
  2. Paper trade for 1-2 weeks
  3. Small position live test
  4. Gradually increase position

Don't go all in right away, no matter how good the strategy, it needs to be calibrated!

XI. Easter Egg: The Strategy Author's "Little Thoughts"​

Looking carefully at the code, you'll find some interesting things:

  1. Very Conservative Trailing Stop: Only locks 0.1% profit

    "A little profit is still profit, don't let the duck in hand fly away"

  2. Two Buy Conditions, Clear Logic: One chases pullbacks, one catches oversold

    "Don't miss either direction, but both have protection"

  3. TTF is Custom Function: Not a standard indicator, needs to calculate yourself

    "Formula I wrote myself, using it with confidence"

XII. The Final Word​

One-Line Review​

"Buy SMA discounts, sell on TTF heat, watch wind with EWO - steady and progressive strategy"

Who Should Use It?​

  • ✅ Traders who like trend following
  • ✅ Quant players who can accept parameter tuning
  • ✅ Learners willing to study new indicators
  • ✅ Investors with risk awareness

Who Should NOT Use It?​

  • ❌ Conservatives seeking stable returns
  • ❌ People who don't like trailing stops
  • ❌ Traders mainly in ranging markets
  • ❌ Lazy people who don't want to tune parameters

Manual Trading Advice​

If you're a manual trader, you can borrow ideas from this strategy:

  1. Find an SMA, wait for price to drop 2-3% below it before considering buying
  2. Use EWO to judge trend direction, go with the main trend
  3. Watch if buying power is overheated, if so consider selling
  4. Set trailing stop, protect profits

XIII. ⚠️ Risk Emphasis Again (Must Read This)​

Backtesting Is Beautiful, Live Trading Needs Caution​

SMAOPv1_TTF's historical backtesting might look good - but note:

11 tunable parameters, easy to "fit" the optimal solution for past markets, but that doesn't guarantee future performance.

Simply put: Historical optimal ≠ Future optimal

Hidden Risks of Complex Strategies​

In live trading, complex logic may cause:

  • Parameter Overfitting: 100% win rate in backtesting, less than 50% in live trading
  • TTF Misjudgment: TTF may fail in extreme market conditions
  • Ranging Losses: Frequent buy/sell triggers in sideways markets, fees eating profits

My Advice (Honest Words)​

1. Run backtest with default parameters first, don't jump to hyperopt
2. Paper trade at least 2 weeks, observe TTF performance
3. Small position live, no more than 5% of total capital per trade
4. Regularly review parameter performance, adjust timely

Remember: Strategy is just a tool, the market is the boss. Test with small positions, staying alive is most important! 🙏

Final Reminder: No matter how good the strategy, the market will humble you without warning. Respect the market, control risk!