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RSI_SMA Strategy: The Trend "Bottom-Catch Top-Ship" Expert

Nickname: Moving Average + RSI, Specialist in Retracement Trading
Specialty: Trend retracement-type player
Timeframe: 15 Minutes

1. What's This Strategy About?​

In a nutshell, RSI_SMA is a strategy that:

  • Uses 20-day moving average to judge major trend direction
  • Uses RSI to find overbought/oversold extreme positions
  • "Bottom-catches" during trend retracements, "top-ships" when rebounds overheat

Think of it like driving on a highway — the moving average tells you "which way the car is heading," RSI tells you "whether it's time to step on the gas or brake" 🚗

2. Core Settings: "Make Enough and Run, Admit Defeat When Wrong"​

Take-Profit Rules (ROI Table)​

Profit reaches 11% → Sell directly, no hesitation

Translation: This strategy has only one target — make 11% and leave. No greed, no恋战, hit the point and go.

Stoploss Rules​

Hard Stoploss: -12% (admit defeat at 12% loss)
Trailing Stop: Activate after 1.5% profit, exit on 2.5% drawdown

Translation:

  • If entered wrong, maximum 12% loss, then admit defeat and leave
  • If making 1.5%, start "lock in profits" mode — as soon as profit pulls back 2.5%, immediately exit

3. 2 Buy Conditions: Simple But Effective​

This strategy ONLY buys when 2 conditions are simultaneously met — quant world's "minimalist":

📉 Condition: Moving Average Retracement + RSI Oversold​

Logic:

Price < 20-day moving average  AND  RSI < 30

Plain English:

"Price has fallen below the moving average (possibly retracement complete), AND RSI shows severely oversold (fallen too far) — enter and wait for rebound!"

This is like seeing a product that usually sells for 100 bucks now at 80 bucks with a coupon — you know it's a good opportunity 🛒

4. 2 Sell Conditions: Time to Go When Time Is Right​

📈 Condition: Above Moving Average + RSI Overbought​

Logic:

Price > 20-day moving average  AND  RSI > 70

Plain English:

"Price has risen above the moving average (possibly risen too far), AND RSI shows severely overbought (buying gone crazy) — sell immediately, don't be greedy!"

5. The Strategy's "Personality"​

✅ Pros​

  1. Clear Logic: Just two indicators,一眼就懂
  2. Classic Combination: SMA and RSI are both veteran indicators, verified countless times
  3. Strong Adaptability: Works in trend retracements, also finds opportunities in oscillating markets
  4. Good Risk Control: Has hard stoploss, also has trailing stop, double insurance

⚠️ Cons​

  1. Moving Average Lag: 20-day moving average has delay, may miss best entry points
  2. Counter-Trend Buying: Buying below moving average,万一 is a real downtrend, may catch knife at mid-slope
  3. Flat Market发呆: When market has no direction, moving average wanders, strategy easily gets slapped both ways

6. When to Use It?​

Market EnvironmentRecommended ActionReason
📈 Trend Retracement✅ 大力用This is the strategy's "home ground," specifically waiting for callbacks to enter
🔄 Oscillating Markets⚠️ 小心用Some opportunities near moving average, but easily repeatedly harvested
📉 Sustained Decline❌ 别用Counter-trend buying,越买越亏
➡️ Flat Consolidation❌ 别用Moving average has no direction, strategy easily dizzy

7. Bottom Line: What's the Verdict?​

One-Word Review​

"Simple and brutal moving average + RSI combo, suitable for trend retracement rebound trading, not suitable for追涨杀跌."

Who It's For:​

  • ✅ Traders who like simple logic
  • ✅ Veterans习惯做 trend retracements
  • ✅ Disciplined players who can execute stoploss strictly

Who It's NOT For:​

  • ❌ People wanting to catch every wave of "贪心派"
  • ❌ People unwilling to wait for retracements的"急脾气"
  • ❌ People who see losses and want to扛单的"倔强型"

My Suggestions:​

  1. Only enter when trend is clearly upward: Moving average direction must be clear, don't瞎折腾 in flat markets
  2. Execute stoploss strictly: -12% is the line, don't想着"再等等看"
  3. Don't追涨: This strategy is bottom-catch type, not追涨 type

8. What Markets Does This Strategy Make Money In?​

8.1 Core Logic: Trend Retracement + Momentum Extreme​

RSI_SMA is a "trend-type counter-trend trader." What does that mean?

It believes: once a trend forms, retracements are opportunities. When price pulls back to near the moving average, paired with RSI oversold, that's the best entry point.

Its Money-Making Philosophy:

  • Don't追顺势: Follow the trend but don't chase highs
  • Don't慌逆势: Dare to buy on retracements, but with strict stoploss
  • Take profit and leave: Make 11% and run, don't be greedy

8.2 Performance in Different Markets (Plain English)​

Market TypeRatingPlain English Explanation
📈 Trend Retracement⭐⭐⭐⭐⭐This is its "home ground," callback buy, rebound profit
🔄 Oscillating Markets⭐⭐⭐☆☆Some small opportunities near moving average, small gains/losses, fees hurt a bit
📉 Sustained Decline⭐⭐☆☆☆Counter-trend buying,越抄越低, frequent stoplosses
➡️ Flat Consolidation⭐☆☆☆☆Moving average has no direction, RSI wanders, strategy发呆

One-liner: Clear trending markets, wait for retracements to enter; unclear trending markets, don't use it.

9. Running This Strategy? Check These Configs First​

9.1 Pair Configuration​

Config ItemSuggested ValueComment
Timeframe15 MinutesDefault config
Number of Pairs3-10 pairsToo many can't watch them all

9.2 Key Parameters​

# Moving Average Period
SMA Period = 20

# RSI Parameters
RSI Period = 14
Oversold Threshold = 30
Overbought Threshold = 70

9.3 Hardware Requirements​

Number of PairsMin RAMRecommended RAMExperience
1-5 pairs1GB2GBSilky smooth
5-10 pairs2GB4GBNormal
10+ pairs4GB8GBSteady

This strategy doesn't挑硬件, simple logic, small computational load.

10. Backtest vs Live: What's the Gap?​

What Backtests Show​

  • Retracement buy rebound, making 11%
  • Stoploss rarely triggers because judgment is accurate
  • Looks very steady, more wins than losses

Problems You May Encounter Live​

  1. Moving Average Lag: When you see the signal, may have missed best entry point
  2. False Breakouts: Price just broke below moving average then bounced, white stoploss
  3. Slippage Costs: In 15-minute timeframe, slippage significant when liquidity is poor

Suggested Process​

1. Backtest (at least 3 months of data)
2. Paper trade (simulated trading for 2 weeks)
3. Small-capitality live (no more than 10% of total capital)
4. Scale up only after confirming steady profitability

Don't YOLO in, even the simplest strategy needs a break-in period!

11. Easter Egg: This Strategy's "Little Designs"​

Looking closely at the code, you'll find some interesting designs:

  1. Take-profit at 11%, stoploss at -12%

    "Profit and loss are about equal, indicating this strategy expects a slightly above 50% win rate to be profitable."

  2. Trailing stop is very active

    "Start 'take profit and leave' after making 1.5%, indicating this strategy would rather make a little than let profits become losses."

  3. Only uses two indicators

    "大道至简, complex strategies未必比简单的好."

12. Last But Not Least​

One-Word Review​

"Simple and effective trend retracement strategy, suitable for patient traders who wait for retracements."

Who It's For:​

  • ✅ Patients who can wait for trend retracements
  • ✅ Technical analysts who like simple logic
  • ✅ Disciplined players who can execute stoploss strictly
  • ✅ Rational players who don't追涨杀跌

Who It's NOT For:​

  • ❌ People wanting to catch every wave
  • ❌ Impatient people
  • ❌ People who see losses and want to扛
  • ❌ People who like追涨杀跌

Manual Trading Suggestions:​

This strategy's logic can be fully executed manually:

  1. Watch 20-day moving average direction
  2. Wait for price to pull back below moving average
  3. Watch if RSI is oversold (< 30)
  4. Conditions met, enter
  5. Set -12% stoploss and +11% take-profit
  6. After making 1.5%, enable trailing stop

13. ⚠️ Risk Reminder (Must Read!)​

Backtests Look Great, Live Trading Needs Caution​

RSI_SMA historical backtests often perform well — but there's a trap:

Moving average and RSI are both lagging indicators; when you see the signal, the best entry point may have passed.

Simply put: "Looking at the rearview mirror to drive, only when the turn is done do you realize how sharp that corner was."

Risks of Counter-Trend Trading​

This strategy buys BELOW the moving average, fundamentally betting "retracement has reached and will rebound." 万一:

  • Market really turns bearish → 越买越低
  • Moving average turns down → may be mid-slope in a downtrend
  • RSI持续 oversold → some coins can fall to RSI single digits

My Suggestions (Genuine Advice)​

1. Only use when clearly upward trend
2. Moving average direction must be upward, don't "bottom-catch" in downtrends
3. Execute -12% stoploss strictly, don't扛单
4. Test with small positions, don't go heavy from the start
5. Take-profit target 11%, don't be greedy

Remember: Moving average tells you direction, RSI tells you timing, but the market is always full of surprises. Test with small positions, survival is what matters! Stay sharp!

Final Reminder: No matter how simple a strategy is, the market is always smarter than you. Only enter when trends are clear, execute stoploss strictly, don't bottom-catch at mid-slope!