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Schism3 Strategy: The Bounce Prediction Master

Nickname: Bounce Prediction Master, Three-Headed Six-Armed
Job: Rebound hunter with binoculars
Timeframe: 5 minutes (main battlefield) + 1 hour (big picture) / 1 hour + 4 hours (transformer version)

1. What Is This Strategy?​

Simply put, Schism3 is:

  • First observes "might bounce", records the price
  • Waits for price to actually recover before entering
  • If you use BTC/ETH as stake currency, it also automatically checks big coin trends

Like an old hunter who won't place an order until confirming the rebound 🎯

The coolest part: It has three versions!

  • Schism3: Base version (5 minutes + 1 hour)
  • Schism3_BTC: BTC stake specific (1 hour + 4 hours)
  • Schism3_ETH: ETH stake specific (1 hour + 4 hours)

2. Core Configuration: "Patiently Waiting for Rebound"​

Take-Profit Rules (ROI Table)​

Just bought: Run at 5% profit
After 10 minutes: Run at 2.5% profit
After 20 minutes: Run at 1.5% profit
After 30 minutes: Run at 1% profit
After 12 hours: Run at 0.5% profit
After 24 hours: No profit required, watch for signals

Translation: This strategy can hold, won't panic even holding for a day.

Stop-Loss Rule​

Maximum loss: 30%

Translation: 30%! That's right, this strategy gives plenty of room for volatility, kind of has a "I don't believe you won't go up" stubbornness 😅

3. Buy Conditions: The Strategy's Coolest "Bounce Prediction"​

This strategy's buy conditions work in three steps, let me break it down:

🎯 Step 1: Bounce Pre-detection​

The strategy asks these questions first:

1h_rsi >= 37        # Large timeframe not too bad
rmi-dn-trend == 1   # Indeed falling
rmi-slow >= 35      # But not fallen too much
rmi-fast <= 28      # Fast indicator somewhat low
mp <= 60            # Momentum not high

Plain English:

"Looks like it might bounce, let me remember this price"

📝 Step 2: Record Bounce Price​

bounce-price = if bounce signal exists, record current price
              otherwise take lowest price of last 8 candles

Plain English:

"Write this price in my little notebook, let's see if it goes up later"

✅ Step 3: Confirm Entry​

Actual buy requires these conditions:

1h_rsi >= 59              # Big trend upward
Bounce signal within 8 periods  # Signal still valid
rmi-up-trend == 1         # RMI turned upward
close >= bounce-price     # Price actually recovered!

Plain English:

"Signal's there, trend's right, price recovered too - place order!"

4. Multi-currency Support: For BTC/ETH Stake Users​

If your stake currency is BTC or ETH, the strategy will extra check:

Timeframe Conditions (5 minutes)​

(BTC's RSI < 60) OR (Fiat RSI > 15)

Plain English:

"BTC shouldn't be too expensive, or USD oversold, then altcoins have a chance to rise"

Information Frame Conditions (1 hour)​

BTC's 1h RMI < 70

Plain English:

"Big coin shouldn't be pumping too crazy, otherwise altcoins get blood-sucked"

Summary: This strategy watches big coin's mood, doesn't want to buy altcoins when BTC is surging 🙈

5. Protection Mechanisms: 5 Layers of "Safety Fuses"​

Protection TypePurposePlain English
Fixed Stop-lossExit at 30% loss"Plenty of room, but don't lose too much"
Dynamic Stop-lossHigher requirements over time"Held long enough without profit, leave"
Order TimeoutCancel if price deviates 1%"Price ran too fast, forget it"
Entry ConfirmationReject if price deviates 1%"Entry price wrong, won't play"
Bounce InvalidationDon't enter if price doesn't recover"Where's the bounce you promised?"

This strategy's stop-loss is 30%, much looser than typical 10%, suitable for positions you can hold through 🔥

6. Sell Logic: Similar to Schism2MM​

6.1 Dynamic Stop-loss​

Held 0 minutes: Allow 3% loss
Held 150 minutes: Allow 1.5% loss
Held 300 minutes: Require profit

6.2 RMI Stop-loss​

ScenarioRMI ThresholdPlain English
Was profitableRMI < 50"Rose but now falling back, protect profit and leave"
Never profitableRMI < 10"Never got up, just take the loss and go"

6.3 Portfolio Profit Management​

if has free slots:
    Other position profit threshold = slot-related calculation
else:
    Only allow biggest loser to sell

Plain English: Be more lenient when there's room, let the worst performer go first when full.

7. This Strategy's "Personality Traits"​

✅ Pros (Compliment Time)​

  1. Bounce Prediction: Record signal price first, confirm recovery before entry, don't buy halfway down
  2. Multi-currency Support: Automatically adapts to BTC/ETH stake, watches big coin mood
  3. Three Versions: Base, BTC, ETH versions - one code, three uses
  4. Parameter Override: Customize parameters per coin group

⚠️ Cons (Complaint Time)​

  1. 30% Stop-loss: A bit loose, may hold losses for a long time before stopping
  2. Multi-data Source: Need extra BTC/USD, COIN/USD data
  3. High Complexity: Bounce system + multi-currency conditions, headache
  4. Backtest Difficult: Multi-currency conditions need extra configuration in backtest

8. Suitable Scenarios: When to Use It?​

Market EnvironmentRecommended ActionReason
BTC/ETH StakeUse Schism3_BTC or Schism3_ETHAutomatically checks big coin trend
Stablecoin StakeUse Schism3 base versionDefault parameters work
Oscillating UptrendDefault parametersStrategy's design target
One-sided DowntrendDon't use or lower stop-loss30% stop-loss may get blown through

9. What Market Can This Strategy Make Money?​

9.1 Core Logic: Bounce Prediction​

Schism3 is a smart rebound strategy. About 350 lines of code (including sub-strategies) - what does that mean? Equivalent to a complete academic paper 📚

Its profit philosophy: Confirm rebound before entry, don't buy halfway down

  • Bounce Pending Signal: First detect "might bounce" conditions
  • Price Recording: Write down the price at signal time
  • Recovery Confirmation: Wait for price to actually recover before buying

9.2 Performance in Different Markets (Plain English)​

Market TypePerformance RatingPlain English Explanation
📈 Oscillating Uptrend⭐⭐⭐⭐⭐Bounce signals precise, confirmation mechanism works
🔄 Sideways Oscillation⭐⭐⭐☆☆Bounce signals may trigger frequently
📉 One-sided Downtrend⭐⭐☆☆☆30% stop-loss may not hold up
⚡ High Volatility⭐⭐⭐☆☆Price confirmation might get slapped

One-sentence Summary: Makes money in oscillating uptrend markets, can't hold up in one-sided downtrend markets.

10. Want to Run This Strategy? Check These Configurations First​

10.1 Choose the Right Version​

Stake CurrencyRecommended VersionTimeframe
USDT/USDSchism35m + 1h
BTCSchism3_BTC1h + 4h
ETHSchism3_ETH1h + 4h

10.2 Multi-currency Data Sources​

If using BTC/ETH stake, need to configure:

# config.json needs extra data pairs
"exchange": {
    "pair_whitelist": [
        "BTC/USDT",
        "ETH/USDT",
        ...your trading pairs
    ]
}

10.3 Hardware Requirements​

Number of PairsMinimum MemoryRecommended MemoryExperience
1-10 pairs2GB4GBSmooth
10-30 pairs4GB8GBNormal
30+ pairs8GB16GBRecommended

10.4 Stop-loss Suggestions​

30% stop-loss is too loose! Suggest adjusting based on risk tolerance:

  • Conservative: stoploss = -0.15
  • Moderate: stoploss = -0.20
  • Aggressive: stoploss = -0.25

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

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

  1. Bounce Pending Three Steps:

    "First observe, then record, then confirm - these three steps are like dating: check photos first, remember the name, then meet before deciding"

  2. Multi-currency Auto-adaptation:

    if stake_currency in ('BTC', 'ETH'):
        # Extra check BTC/ETH trend

    "Using BTC as stake? Then I need to check BTC's mood"

  3. Parameter Override System:

    if pair in ('ABC/XYZ', 'DEF/XYZ'):
        buy_params = self.buy_params_GROUP1

    "Different coins can use different parameters, very flexible"

  4. Sub-strategy Inheritance:

    "One code, three versions, inheritance and reuse, elegant"

12. Final Words​

One-sentence Review​

"A smart strategy that waits for bounce confirmation before entering, but stop-loss is a bit loose."

Who Should Use It?​

  • ✅ Players using BTC/ETH as stake currency
  • ✅ Those who like rebound/pullback trading style
  • ✅ Big hearts who can hold 30% floating loss
  • ✅ Rational types pursuing scientific confirmation

Who Shouldn't Use It?​

  • ❌ Conservative types who feel pain at 5% stop-loss
  • ❌ Players only doing backtesting (multi-currency conditions hard to configure)
  • ❌ Lazy people wanting simple strategies
  • ❌ Warriors buying dips in one-sided downtrends

Manual Trading Suggestions​

If you want to follow manually without a bot:

  1. Find coins with 1h RSI >= 37 but not too high
  2. Wait for RMI trend to turn upward
  3. Confirm price has recovered from recent lows
  4. If using BTC stake, first check BTC isn't pumping too crazy

13. ⚠️ Risk Re-emphasis (Must Read)​

Backtest Looks Great, Live Trading Needs Caution​

Schism3's 30% stop-loss seems very tolerant - but there's a trap:

30% stop-loss means you may bear significant floating losses!

Simply put: This strategy can hold, but can you?

Hidden Risks of Complex Strategies​

In live trading, complex logic may cause:

  • Multi-currency Data: Missing BTC/ETH data will cause strategy to fail
  • Bounce Confirmation Failure: Price recovers then drops back down
  • Late Stop-loss Trigger: 30% stop-loss may have you holding for a long time
  • Frequent Signals: Oscillating markets may trigger many false signals

My Advice (Sincere Words)​

1. First adjust stop-loss to -0.15 to -0.20
2. Make sure multi-currency data source is configured correctly
3. Dry-run for at least two weeks observing signal quality
4. Small capital live test for bounce confirmation effect

Remember: No matter how smart the bounce prediction, when the market teaches you a lesson it won't call ahead. Light position testing, survival is most important! 🙏