Skip to main content

Combined_NFIv7_SMA Strategy Analysis

Strategy Number: #128 (128th of 465 strategies) Strategy Type: Multi-Condition Trend Following + Bollinger Band Rebound + Dynamic Take-Profit Timeframe: 5 Minutes (5m) + 1 Hour (1h) Dual Timeframe

I. Strategy Overview​

Combined_NFIv7_SMA is the 7th-generation variant of the NostalgiaForInfinityV7 series created by Freqtrade community developer iterativ, and is an upgraded version of NFIv6. The strategy inherits the core design philosophy of the Nostalgia For Infinity series, integrating multiple technical indicator protection mechanisms and multi-timeframe analysis to form a complex but efficient buy/sell signal system.

From the strategy architecture, Combined_NFIv7_SMA adopts a "protection layer + core signal" dual-layer filtering mechanism. Each buy condition group is equipped with EMA protection, SMA200 trend protection, and special protection mechanisms for "dips" and "pumps." The strategy adopts 5 minutes as the primary timeframe, with 1 hour for trend confirmation.

Core Features​

FeatureDescription
Buy Conditions26 independent buy signals (2 more than NFIv6), independently enableable/disableable
Sell Conditions8 basic sell signals + multi-layer dynamic take-profit + trailing stop
Protection Mechanisms8 groups of buy protection parameters
Timeframe5-minute primary + 1-hour informational
DependenciesTA-Lib, technical (qtpylib), numpy, pandas, zema

II. Strategy Configuration Analysis​

2.1 Basic Risk Parameters​

# ROI Exit Table (time: minimum profit rate)
minimal_roi = {
    "0": 0.10,      # Immediate: 10% profit
    "30": 0.05,     # After 30 minutes: 5% profit
    "60": 0.02,     # After 60 minutes: 2% profit
}

# Stop Loss Settings
stoploss = -0.10   # 10% hard stop-loss

# Trailing Stop
trailing_stop = True
trailing_only_offset_is_reached = True
trailing_stop_positive = 0.005
trailing_stop_positive_offset = 0.030

Key Difference from V6: trailing_stop_positive_offset changed from 3.5% to 3.0% — trailing stop activates earlier in V7.

III. Timeframe and Indicator System​

3.1 Dual Timeframe Architecture​

TimeframePurposePeriod
5 minutesPrimary trading timeframe, generates trade signalsShort-term
1 hourInformational timeframe, for trend confirmation and filteringLong-term

3.2 Core Indicator System​

1-Hour Timeframe Indicators:

  • EMA (12, 15, 20, 26, 35, 50, 100, 200)
  • SMA 200 (trend judgment)
  • RSI (14-period)
  • Bollinger Bands (20-period, 2 standard deviations)
  • Chaikin Money Flow (CMF)
  • Hull Moving Average (HMA)

5-Minute Timeframe Indicators:

  • EMA (12, 15, 20, 26, 35, 50, 100, 200)
  • SMA (5, 30, 200)
  • RSI (4 and 14 periods)
  • MFI (Money Flow Index)
  • Bollinger Bands (20 and 40 periods)
  • EWO (Elliot Wave Oscillator)
  • ZEMA (Zero-Lag EMA)
  • Chopiness (market smoothness indicator)

IV. Entry Conditions Details​

4.1 New Conditions in V7 (Conditions #24 and #26)​

Type 7: ZEMA New Conditions (Conditions 24, 26):

  • Uses ZEMA (Zero-Lag EMA) as new entry judgment basis
  • Condition #26 supports optimizable parameter configuration

The ZEMA (Zero-Lag EMA) is a variant of EMA that reduces lag, providing faster entry signals than traditional EMAs.

4.2 Main Buy Condition Categories​

TypeConditionsCore Logic
RSI/MFI Oversold Rebound1, 2RSI and MFI simultaneously oversold, with EMA and SMA200 trend protection
Bollinger Band Rebound3, 4BB40/BB20 lower band rapid rebound
EMA Golden/Death Cross5, 6, 7EMA12 crosses above EMA26 + various filters
RSI Extreme Oversold8, 18, 19, 20, 21RSI extremely low (<20 or similar) + volume expansion
MA Offset9, 10, 11, 14, 15, 16, 22Price below MA by certain percentage + confirmation
EWO Oscillator12, 13, 16, 17, 22, 23Elliot Wave Oscillator captures momentum reversal
ZEMA24, 26Zero-lag EMA for faster, more sensitive entry signals

V. Exit Conditions Details​

5.1 Fixed Take-Profit Conditions (12-Level Dynamic Take-Profit)​

sell_custom_profit_0  = 0.01  (rsi < 34)
sell_custom_profit_1  = 0.02  (rsi < 35)
sell_custom_profit_2  = 0.03  (rsi < 37)
sell_custom_profit_3  = 0.04  (rsi < 42)
sell_custom_profit_4  = 0.05  (rsi < 43)
sell_custom_profit_5  = 0.06  (rsi < 45)
sell_custom_profit_6  = 0.07  (rsi < 48)
sell_custom_profit_7  = 0.08  (rsi < 54)
sell_custom_profit_8  = 0.09  (rsi < 55)
sell_custom_profit_9  = 0.10  (rsi < 54)
sell_custom_profit_10 = 0.12  (rsi < 42)
sell_custom_profit_11 = 0.20  (rsi < 34)

5.2 Trailing Stop (3 Modes)​

  • Mode 1: Profit 16-60%, RSI 20-50, 3% drawdown from high
  • Mode 2: Profit 10-40%, RSI 20-50, 3% drawdown
  • Mode 3: Profit 6-20%, 1h SMA200 declining, 5% drawdown

5.3 Long-Holding Protection​

V7 adds 900-minute (approximately 15-hour) holding protection: automatically exits when holding exceeds 15 hours with profit between 3-4%.

VI. Protection Mechanism Deep Dive​

6.1 Safe Dips (Safe Dips) Protection​

12 levels (10-120) with different dip thresholds, preventing bottom-fishing at mid-slope.

6.2 Safe Pump (Safe Pump) Protection​

12 levels (10-120) with 24/36/48-hour periods, preventing chasing at the top.

VII. Strategy Pros & Cons​

Advantages​

  1. Multi-Layer Protection: 8 protection mechanisms significantly reduce false signals
  2. Dual-Timeframe Analysis: Combines 5m and 1h, balancing short-term and long-term
  3. Refined Take-Profit: 12-level dynamic take-profit maximizes profits
  4. Highly Configurable: 26 buy conditions independently controllable
  5. New ZEMA Indicator: Zero-lag EMA provides more sensitive entry signals

Limitations​

  1. High Complexity: Large parameter count requires expertise and time for optimization
  2. Trading Frequency: May generate many trades during bull markets
  3. Overfitting Risk: Large parameter count may overfit historical data

VIII. Applicable Scenarios​

Market EnvironmentRecommended ConfigurationNotes
Bull Market / Wide VolatilityEnable all conditionsBest performance
ConsolidationReduce condition countProtection triggers frequently
Bear MarketReduce position countTrading frequency decreases
Extreme VolatilityUse with cautionPrice limits may affect execution

IX. Live Trading Notes​

9.1 Performance in Different Market Environments​

Market TypePerformance RatingAnalysis
Bull Market⭐⭐⭐⭐⭐Clear trends; multi-condition resonance most effective
Volatile Market⭐⭐⭐☆☆Protection triggers frequently; may miss opportunities
Bear Market⭐⭐☆☆☆Protection triggers; trading frequency reduced
Extreme Volatility⭐⭐☆☆☆Price limit moves may affect execution

X. Summary​

Combined_NFIv7_SMA is a refined upgrade from NFIv6, adding 2 new buy conditions (#24 and #26) and introducing the ZEMA indicator for more diverse entry signals.

Its core value lies in:

  1. Multi-Layer Protection: 8 protection mechanisms reduce false signals
  2. Refined Take-Profit: 12-level dynamic take-profit lets profits run
  3. Flexible Configuration: 26 buy conditions independently controllable
  4. Dual Timeframe: Balances short-term and long-term

For quantitative traders, test thoroughly in paper trading first, then gradually apply to live trading based on actual market performance.

This document is automatically generated based on strategy source code.