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ElliotV7: Plain and Simple

1. What Is This?​

ElliotV7 is an automated crypto trading strategy built by @Rallipanos. The name says it all: the 7th major version of the Elliott Wave-based strategy. "Elliot" = uses Elliott Wave theory, "V7" = seventh iteration, thoroughly tested and refined.

Core philosophy: only buy in confirmed uptrends, and only when price has pulled back a bit. Never chase, always wait for a better entry.

2. How It Decides to Buy​

The strategy ONLY buys in uptrends, confirmed by looking at the bigger picture (1-hour chart) before making decisions on the 5-minute chart.

Think of it like this: you're driving and checking the GPS (1-hour) for direction, then watching the road (5-minute) for when to accelerate or brake. If the GPS says you're going south, you're not gonna make a U-turn just because the road ahead looks clear.

Buy Channel 1: The Trend Pullback (Main Way)​

7 conditions ALL must be met:

  1. 1-hour trend is UP (EMA20 > EMA25)
  2. Fast RSI below 35 (short-term oversold)
  3. Price is ~2.5% below the buy MA
  4. EWO > 2.327 (trend momentum is strong)
  5. Regular RSI < 69 (not overheated)
  6. Volume is happening
  7. Price is still below the sell MA

This is extremely strict. It means: "Market's going up, it pulled back a bit, short-term is oversold, but still healthy — good time to buy."

Buy Channel 2: The Crash Bounce​

Same 1-hour trend check, but EWO < -19.988 (extreme oversold, way worse than Channel 1).

This is for when the market has crashed so hard that even though the 1-hour trend might still be technically up, everyone's panicking. EWO at -20 is almost unheard of — that's full panic mode. The strategy bets that when things get this bad, a bounce is coming.

3. How It Decides to Sell​

Two different sell channels, adapting to market strength:

Sell Channel 1: Strong Momentum Exit​

When market is running strong:

  • 9-period SMA above 50-period HMA (short-term riding high)
  • Price above sell MA
  • RSI > 50 (still healthy)
  • Fast RSI crossing above slow RSI

This means: "The trend is strong and accelerating, but we're taking profits anyway." More conservative exits in strong markets.

Sell Channel 2: Normal Exit​

When momentum is weaker:

  • 9-period SMA below HMA
  • Price above sell MA
  • Fast RSI crossing slow RSI

More lenient — even if the trend isn't super strong, if we've made a little profit and the bounce is losing steam, take it and move on.

4. Three Layers of Protection​

Layer 1: Fixed Stop-Loss — 32%​

If you're down 32%, admit defeat and exit. Seems huge, but:

  • The entry conditions are SO strict (7 things must line up), this is the backup
  • Crypto can gap 20%+ overnight
  • The entry is at a pullback, so your cost basis is already reasonable

Layer 2: Trailing Stop (Smart Lock)​

After making 3% profit, it starts tracking:

  • Climbs to $110 → stop at $109.45
  • Pulls back to $109.45 → SELLS, locks in ~9.45%

Layer 3: Time Stop (The "12-Hour Rule")​

If you've been holding for 12+ hours AND you're down more than 10%, the stop tightens to just -1%. This means: "We gave this trade 12 hours. It's still deeply underwater. Something's wrong. Get out now."

5. What About Profits?​

ROI targets (time-based):

  • Right away: 5.1%
  • After 10 min: 3.1%
  • After 22 min: 1.8%
  • After 66 min: ANY profit will do

The longer you wait, the less profit you demand. Your capital has opportunity cost.

Exception: If buy signals are still firing, it ignores time and keeps holding. "The trend is still your friend."

6. Key Indicators​

Multi-Timeframe Trend Check​

1-hour EMA(20) > EMA(25) = uptrend. This is the MOST IMPORTANT condition — if the 1-hour trend isn't up, NOTHING triggers a buy.

EWO​

Short EMA (50) minus Long EMA (200).

  • EWO > 2.327: Strong upward momentum, pullback buy territory
  • EWO < -19.988: Extreme panic, crash bounce territory

RSI Family​

  • RSI(4): Lightning-fast, catches oversold quickly
  • RSI(14): Standard, for confirmation
  • RSI(20): Slower, for trend direction
  • RSI(100): Ultra-long, for the big picture on the 1h chart

HMA(50)​

Hull Moving Average — faster than regular MA but smoother than EMA. Used to judge if the short-term trend is healthy.

7. Pros and Cons​

Pros​

  • Bulletproof entry: 7 conditions = almost no bad entries
  • Smart exits: Different strategies for strong vs. weak markets
  • Time horizon respected: Won't hold forever
  • Clear philosophy: Only in uptrends, only on pullbacks

Cons​

  • Few signals: 7 conditions = very selective
  • -32% stop is wide: Largest stop among Elliot variants
  • Needs trending markets: No trades in choppy/bear markets
  • Parameter sensitivity: Each of the 7 conditions has tunable parameters

8. Who Is This For?​

Good for:

  • Patient traders who can wait for perfect setups
  • Those who want minimum false signals
  • Capital that can withstand -32% worst-case
  • People who understand multi-timeframe analysis

Not for:

  • Traders who want frequent action
  • Capital that can't handle -32% swings
  • Choppy/ranging market traders
  • Beginners without Elliott Wave knowledge

9. Summary​

ElliotV7 is the "quality over quantity" choice in the Elliot family:

  • Only enters confirmed uptrends with 7 strict conditions
  • Two different sell approaches based on market strength
  • Three protection layers including a 12-hour time stop
  • Designed for quality signals, not frequency

Best use: Use it when you want maximum confidence in each trade, can tolerate wider stops, and have patience for fewer but higher-quality setups.

Before live: Backtest extensively, validate with out-of-sample data, start small.

For learning reference only, not investment advice.