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ElliotV5HOMod2 - Strategy Analysis

I. Strategy Overview​

ElliotV5HOMod2 is an EWO-based trend-following strategy optimized for the Freqtrade framework. Key design: catching pullback opportunities in trends and identifying reversal points using wave oscillator extremes.

Core Design​

The strategy uses a bidirectional entry logic:

  • EWO high (> 3.34): Trend continuation pullback
  • EWO low (< -17.457): Extreme oversold bounce

Key Parameters​

  • Buy EMA: 17-period, offset 0.978
  • Sell EMA: 39-period, offset 1.011
  • RSI buy threshold: 60
  • EWO high: 3.34
  • EWO low: -17.457
  • Stop-loss: -10%
  • Minimal ROI: 5% → 4% → 3% (decreasing over time)

II. Entry Signals​

Condition 1: Trend Pullback​

close < ma_buy × 0.978 AND EWO > 3.34 AND RSI < 60 AND volume > 0

Condition 2: Oversold Bounce​

close < ma_buy × 0.978 AND EWO < -17.457 AND volume > 0

No RSI filter in Condition 2 (extreme EWO already implies oversold RSI).

III. Exit Signals​

close > ma_sell × 1.011 AND volume > 0

Uses 39-period EMA for exit, longer than the 17-period buy EMA ("slow exit").

IV. Risk Management​

Fixed Stop-Loss: -10%​

Trailing Stop​

  • Activates at 3% profit
  • 0.5% below highest price

Time Stop​

After 140 minutes, if still at a loss near entry, tightens stop to -0.5%.

ROI Targets​

  • 0 min: 5%
  • 40 min: 4%
  • 201 min: 3%

V. Strategy Pros & Cons​

Advantages​

  • Dual-entry covering both trend and reversal
  • 10% stop-loss is tighter than most Elliot strategies
  • Time-based stop clears "zombie" positions
  • Complete risk management system

Limitations​

  • May underperform in choppy markets
  • 1-hour informative timeframe not fully utilized in current version
  • Missing volume confirmation (only checks volume > 0)

VI. Summary​

ElliotV5HOMod2 is a mature, well-structured strategy. Its 10% stop-loss and time-based stop for zombie positions show thoughtful risk design. Best suited for traders who want tighter control than other Elliot variants.

Disclaimer: For learning reference only, not investment advice.