Skip to main content

NostalgiaForInfinityXw Strategy Explained

Foreword​

This article explains the NostalgiaForInfinityXw cryptocurrency quantitative strategy in plain, simple language. Whether you're a complete beginner or an experienced trader looking to quickly grasp the strategy's core, this is for you.

1. What Does This Strategy Do?​

Simply put, this is a program that automatically buys and sells cryptocurrencies.

Its core idea is: when prices drop, buy in batches; when prices rise, sell in batches to make a profit.

Think of it like a smart shopper at a supermarket — buying when prices are discounted and selling when they're marked up. This strategy is your "automated shopping bot" that does exactly that.

Who is this strategy for?​

  • People with some programming skills who know how to use Freqtrade
  • Those who want to steadily make money in the crypto market
  • Investors who can accept occasional losses and pursue long-term profitability

2. How Does the Strategy Work?​

Imagine you're watching a coin's price chart:

Price
  ↑
  │      ○───○  Sell Zone
  │     ╱     ╲
  │    ╱       ╲
  │   ╱         ○───○  Buy Zone
  │  ╱         ╱
  │ ╱         ╱
  │○─────────○
  └─────────────→ Time

The strategy's workflow:

  1. Monitor: 24/7 watching coin prices
  2. Find opportunities: When a coin drops to a "bargain" level
  3. Buy: Auto-place buy orders
  4. Hold: Wait for prices to rise
  5. Sell: Auto-sell at target prices to lock in profits

3. The Strategy's Core Secret — "69 Different Doors"​

The most powerful feature of this strategy is that it has 69 different buy conditions.

What does that mean? It's like opening 69 different stores, each selling different stuff. As long as customers come to ANY store, you make money.

How are these buy conditions categorized?​

Type 1: Bargain Hunting​

Characteristics: Wait until the coin price has crashed badly before buying — catching bargains.

Example: A coin dropped from $100 to $50, half off. The strategy thinks "too cheap!" and starts buying.

How it looks in code:

rsi_14 < 35.0       # RSI below 35, meaning significant drop
r_14 < -90.0        # Price change rate below -90, severely oversold

Type 2: Trend Pullback​

Characteristics: The coin is generally rising, but has a small pullback. Buy during the pullback.

Example: Bitcoin rose from $30,000 to $40,000, pulled back to $38,000. Buy here, wait for it to continue to $45,000.

How it looks in code:

ema_200 > ema_200.shift(12)   # 200 MA is rising, major trend is up
close < ema_20 * 0.97         # Price below MA by 3%, a pullback opportunity

Type 3: Support Bounce​

Characteristics: Price drops to a certain "support level" — historically, every time it dropped here it bounced back. So buy at the support level.

Example: A coin always bounces when it hits $100. Now it's near $100 again, strategy buys.

How it looks in code:

close > sup_level_1d          # Price above daily support
low < sup_level_1d * 0.99     # Low touched the support level

4. Exit Strategy — "Tiered Profit Taking"​

The strategy's exit logic is interesting, called Tiered Profit Taking.

What is Tiered Profit Taking?​

Simply: The more you profit, the easier it is to let you sell.

Example:

  • Just bought, profiting 1%: Exit conditions are very strict, because you haven't earned enough yet
  • Profiting 5%: Exit conditions get looser, you can lock in gains
  • Profiting 10%: Extremely easy to sell — grab the profit and run

Why design it this way?​

Let's say you bought a coin:

  1. Just bought: You definitely don't want to sell yet
  2. Profiting 3%: Small profit, but want to see if it goes higher
  3. Profiting 8%: Good enough, if anythingthings shift happens, sell
  4. Profiting 15%: Too much! Sell immediately and lock in profits!

The strategy simulates this human exit decision-making process.

5. What "Tools" Does the Strategy Use?​

The strategy is like a mechanic with many tools to judge when to buy and when to sell.

Tool 1: RSI Indicator​

What it is: A number from 0 to 100, telling you if the coin price is "too expensive" or "too cheap".

  • RSI > 70: Too expensive, may drop
  • RSI < 30: Too cheap, may rise

How the strategy uses it:

rsi_14 < 35.0   # RSI below 35, coin is cheap, consider buying
rsi_14 > 70.0   # RSI above 70, coin is expensive, consider selling

Tool 2: EMA Moving Average​

What it is: Average the prices from a recent period and draw it as a line.

  • EMA12: Average price of last 12 candles, reflects short-term trend
  • EMA200: Average price of last 200 candles, reflects long-term trend

How the strategy uses it:

close > ema_200    # Price above long-term MA, major trend is up
ema_12 > ema_26    # Short-term MA crosses above long-term MA, golden cross, bullish

Tool 3: Bollinger Bands​

What it is: Draw two lines above and below the moving average, forming a "channel".

  • Price touching upper band: May drop
  • Price touching lower band: May rise

How the strategy uses it:

close < bb20_2_low * 0.98   # Price breaks below Bollinger lower band, oversold, buying opportunity

Tool 4: CMF Money Flow​

What it is: Checks how much money is flowing into this coin.

  • CMF > 0: Money flowing in, good
  • CMF < 0: Money flowing out, bad

How the strategy uses it:

cmf < -0.1    # Money flowing out, may drop, sell quickly
cmf > 0.1     # Money flowing in, may rise

Tool 5: R Indicator (Strategy's Own Creation)​

What it is: An indicator the strategy developed itself, measuring the speed and degree of price changes.

r_14 < -90    # Price dropped a lot within 14 candles, bottom-fishing opportunity
r_480 > -30   # Long-term decline not severe, not a bear market

6. The Strategy's "Safety Belt" — Risk Management​

Driving requires seatbelts; trading needs risk management. The strategy has several protection mechanisms:

Protection 1: Stop-Loss​

What if it keeps dropping after buying? The strategy helps you stop-loss.

stoploss = -0.10   # Auto-sell if loss reaches 10%

Example: Bought at $100, drops to $90, auto-sells to prevent further losses.

Protection 2: Trailing Stop​

How to protect profits after earning money? Use trailing stop.

trailing_stop = True
trailing_stop_positive = 0.01
trailing_stop_positive_offset = 0.03

Example:

  • Bought at $100
  • Rose to $103, trailing stop activates
  • Rose to $110, stop price becomes $109
  • Dropped to $109, auto-sells, gained 9%

Protection 3: BTC Correlation​

Bitcoin is the big brother; when big brother drops, little brothers usually drop too.

if btc_not_downtrend_1h:   # If Bitcoin isn't falling
    allow buying             # Then and only then allow buying

This way, when BTC crashes, the strategy reduces buying and avoids "catching a falling knife".

7. Multi-Timeframe — "Telescope + Microscope"​

The strategy watches 4 time cycles simultaneously, like using both a telescope and a microscope:

Four Time Cycles​

Time CycleRoleAnalogy
Daily (1d)See major trendTelescope, look far
Hourly (1h)See medium-term trendTelescope, look closer
15-Min (15m)Find precise entryMicroscope, look closely
5-Min (5m)Execute tradesHands-on operation

Why this approach?​

Example:

  1. Daily shows trend: Bitcoin daily is rising, major trend up ✓
  2. Hourly shows pullback: Hourly shows a pullback, reaching support ✓
  3. 15-minute finds entry: 15-minute RSI oversold, short-term bottom ✓
  4. 5-minute executes: Buy now!

This is the perfect entry point: "Major trend is up + small trend is pulling back."

8. The Strategy's "Brain" — Buy Condition Details​

Let's look at some typical buy conditions:

Condition 1: Semi-Swing Bottom-Fishing​

Plain English explanation:

  • Coin price has recently risen (has momentum)
  • Now dropped a bit (RSI < 35)
  • But hasn't crashed (hourly RSI still healthy)
  • Conclusion: This is a pullback, can buy

Suitable scenario: Short-term pullback in an uptrend.

Condition 3: Bollinger Lower Band Bottom-Fishing​

Plain English explanation:

  • Bollinger Bands are wide enough (enough volatility)
  • Price breaks below lower band (oversold)
  • Candle wick is short (real drop, not fake)
  • Conclusion: Rebound opportunity coming

Suitable scenario: Volatile ranging markets.

Condition 17: Deep Bottom-Fishing​

Plain English explanation:

  • Short-term dropped a lot (R14 < -99)
  • Long-term also dropped a lot (R480 < -90)
  • Hourly also dropped a lot (R480_1h < -93)
  • RSI at historical lows
  • Conclusion: This is a crash-style drop, but also a good bottom-fishing opportunity

Suitable scenario: Extreme decline markets (high risk, potentially high returns).

Condition 22: Daily Support Bounce​

Plain English explanation:

  • Price reached daily support level
  • Low touched but closed above support
  • Support level is valid
  • Conclusion: Support bounce opportunity

Suitable scenario: Pullback trading near key support levels.

9. Exit Condition "Triggers"​

Exit Signal 1: RSI Overbought​

rsi_14 > 74.0    # RSI too high
cti > 0.85       # Trend is strong
cci > 240.0      # Price too far from average

Plain English: Risen too fast, time to rest, sell to lock in gains.

Exit Signal 2: Capital Outflow​

rsi_14 > 68.0    # RSI still at high level
cmf < -0.1       # But money is starting to flow out
cmf_15m < 0      # Short-term money also flowing out

Plain English: Price is still high, but money is running away, sell quickly.

Exit Signal 3: Trend Deterioration​

sma_200_dec_20   # 200 MA continuously declining
rsi_14 > 68.0    # RSI still at high level

Plain English: Major trend starting to deteriorate, don't be greedy, sell.

10. How to Use This Strategy?​

Step 1: Install Freqtrade​

git clone https://github.com/freqtrade/freqtrade.git
cd freqtrade
./setup.sh -i

Step 2: Install Dependencies​

pip install pandas_ta ta-lib technical

Step 3: Configuration File​

Set in config.json:

{
    "timeframe": "5m",
    "use_sell_signal": true,
    "sell_profit_only": false,
    "ignore_roi_if_buy_signal": true,
    "max_open_trades": 6
}

Step 4: Run​

freqtrade trade --strategy NostalgiaForInfinityXw

11. Live Trading Advice​

Trading Pair Selection​

Recommended:

  • Major coins: BTC, ETH, BNB
  • Stablecoin pairs: BTC/USDT, ETH/USDT
  • Liquid altcoins

Avoid:

  • Leveraged tokens (BULL, BEAR)
  • New coins (insufficient data)
  • Low-liquidity coins

Capital Management​

  • Hold 4-6 positions simultaneously
  • Equal capital per position
  • Total capital should not exceed what you can afford to lose

Mindset Advice​

  1. Accept losses: Strategy can't win every trade, there will be losses
  2. Think long-term: Look at monthly, quarterly returns, not daily
  3. Regular checks: Review strategy performance weekly, adjust parameters if needed

12. FAQ​

Q1: How much can this strategy earn?​

A: No fixed answer. Based on historical backtesting and live experience, annualized returns may range from 20%-100%, depending on market conditions and parameter settings.

Q2: Can it lose everything?​

A: Strategy has 10% stop-loss, maximum loss per trade is 10%. With proper capital management, you won't lose everything. But extreme markets may cause consecutive losses.

Q3: Does it need the computer running all the time?​

A: Yes. A cloud server (VPS) running 24/7 is recommended. AWS, DigitalOcean, etc. are recommended providers.

Q4: How to know if the strategy works?​

A:

  1. Run historical backtesting first
  2. Then paper trading (dry-run)
  3. Then small-capital live trading
  4. Increase capital after confirming profitability

Q5: Do parameters need frequent adjustment?​

A: Quarterly re-optimization is recommended. Crypto markets change quickly; last year's good parameters may not work this year.

13. Summary​

Strategy's Core Logic​

  1. Multi-condition buying: 69 different buy conditions, one will always catch the opportunity
  2. Tiered profit taking: The more you earn, the easier to sell, protecting profits
  3. Multi-timeframe: Daily for trend, hourly for pullback, minutes for entry timing
  4. Risk control: Stop-loss, trailing stop, BTC correlation — multiple layers of protection

Who is it suitable for?​

  • People with some programming skills
  • Who can accept occasional losses
  • Willing to spend time learning and optimizing
  • Pursuing long-term stable returns

Final Thoughts​

This strategy is not a "guaranteed profit" holy grail, but a tool that helps you systematize trading. Its success depends on:

  • Correct understanding and configuration
  • Appropriate market environment
  • Continuous monitoring and optimization
  • Reasonable risk expectations

Remember: Quantitative trading is a marathon, not a sprint. Patience, learning, and persistence are what get you further.

Document Version: 1.0 Generated: 2026-03-27 Strategy Version: NostalgiaForInfinityXw v10.9.80