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Chispei Strategy: Moving Averages + Momentum, Old-School But Practical

Nickname: MA Veteran / Momentum Catcher Profession: Medium-short-term trend hunter Timeframe: 4 Hours (4h)

1. What's This Strategy All About?​

Simply put, Chispei is a strategy that:

  • Uses moving average crossovers to judge trend direction
  • Uses momentum indicator to find buy/sell points
  • Specifically boards when trend starts and gets off before trend ends

Think of it like an old-school trend hunter, holding a telescope (MAs) to observe wind direction, spotting prey (trend) appears and decisively shoots (buys), sees prey running away and packs up (sells) 🔫

Its core logic is extremely simple:

"Fallen too much (low momentum) + MA golden cross = buy buy buy" "Can't rise further (momentum down) + MA death cross = sell sell sell"

2. Core Settings: Basically "Let Profits Run, Cut Losses When Due"​

Take-Profit Rule (ROI Table)​

This strategy's take-profit design is interesting — like a greedy vendor:

⏱️ Holding Time              💰 Take-Profit Line
────────────────────────────────────────────────
0-20 minutes               → 4% and leave
20-30 minutes              → 5% and leave
1-2 hours                  → 10% and run
After 2 days                → 7.9% also fine
After ~30 hours            → Wow 67.6%?! Must run!
After 3.5 days              → Whatever the profit, CLEAR IT!

Translation: This strategy is hasty early on (satisfied with 4-10%), but has a strange time window (~30 hours) setting 67.6% take-profit... Honestly, I don't know what the author was thinking; might be a backtesting "magic number" 🤷

Stop-Loss Rule​

Stop-loss: -32.336%

Translation: Cut losses at 30% and admit defeat! This stop-loss is really high; ordinary people can't handle it.

"I give you 32% of drawdown room; play however you want, but beyond that, sorry, goodbye 👋"

3. Two Buy Conditions: I've Categorized Them for You​

This strategy's buy conditions are extremely simple — 2 conditions must both be met:

🎯 Category 1: Momentum Oversold (Confirms bottom found)​

Core Logic: MOM (momentum indicator) below 15 means price has fallen for a while; rebound likely

Plain English:

"Fallen too much; should rebound"

Key Condition:

  • dataframe['mom'] < 15 → Momentum indicator below 15; oversold zone

📈 Category 2: MA Golden Cross (Confirms trend turning up)​

Core Logic: 13-day MA crosses above 25-day MA from below; "golden cross" forms; short-term strength exceeding long-term

Plain English:

"MA golden cross; trend about to rise"

Key Condition:

  • dataframe['fastMA'] > dataframe['slowMA'] → 13-day MA > 25-day MA

Combined Effect​

This is like two veterans confirming with each other:

  1. Momentum says: "Fallen enough; should rebound"
  2. MAs say: "Trend about to rise; short-term strength exceeds long-term"

The two confer: "Let's do it!" 🏃‍♂️💨

4. Protection Mechanisms: None! Just Going Commando!​

Believe it or not, Chispei has NO additional entry protection mechanisms whatsoever.

Protection TypeAvailabilityNote
Volume filter❌None
RSI confirmation❌None
Bollinger Band filter❌None
Time filter❌None

Plain English: This strategy is like a naked warrior going into battle, no protection whatsoever, just relies on two indicators to fight the world.

"What's there to fear? Cut losses if lose, enjoy life if win!" 💪

My critique: Though simplicity is a virtue, it's a bit... brave 😅 Fortunately the strategy itself is simple enough that "over-protection" isn't a concern.

5. Sell Logic: More Elaborate Than Buy​

5.1 Take-Profit Exit: Run When Time Comes​

As discussed in section 2, the strategy automatically triggers different levels of take-profit based on holding time. Simply put:

  • Early: Made 4-10% and want to run (conservative)
  • Middle: Has a weird 67.6% high take-profit (don't know why)
  • Late: 3.5 days forces liquidation (regardless of profit)

5.2 Signal Exit: MA Death Cross + Momentum Pullback​

The strategy has 2 sell conditions (must both be met):

ConditionIndicatorThresholdPlain English
Condition #1MOM< 80Momentum pulling back from highs; can't rise
Condition #2MAsDeath cross13-day MA falls below 25-day MA; trend turning bearish

Classic dialogue:

"Can't rise anymore (momentum down) + trend broken (MA death cross) = Run!"

6. Strategy "Personality"​

✅ Strengths​

  1. Simple and clear: Only 3 indicators; even a kindergarten kid can understand 😂
  2. Strong trend capture: High stop-loss allows profits to run; big gains when trends come
  3. Works both ways: Can go long or short; works in both bull and bear markets
  4. No fuss: No pile of protection conditions; trades when signals come

⚠️ Weaknesses​

  1. Stop-loss too brave: -32% stop-loss; can get chopped哭 in ranging markets
  2. Many false signals: MA crossovers especially prone to fakeouts in no-trend conditions
  3. Serious lag: By the time golden cross confirms, best entry is gone
  4. No protection: Just relies on two indicators going commando; aren't you nervous? 🤔

7. When to Use It?​

Market EnvironmentRecommended ActionReason
📈 Clear uptrend✅ Highly recommendedMA golden cross hits bullseye;躺着赚钱
📉 Clear downtrend✅ Recommend (short)Same logic reversed works for shorting
🔄 Ranging market❌ Don't useHigh stop-loss will lose你到哭
😴 Consolidation❌ Don't useMA crossovers produce too many false signals

8. Summary: What Do I Think?​

One-Line Verdict​

"Old-school but practical trend strategy; simple and brutal; good in trending markets"

Who's It For?​

  • ✅ Old hands with strong psychological endurance who can handle 32% losses
  • ✅ Investors who like medium-long-term trend-following
  • ✅ Lazy people who don't want to study complex indicators and just want simple money
  • ✅ Big capital bosses who aren't afraid of volatility

Who's It NOT For?​

  • ❌ Conservative people who can't stomach seeing losses
  • ❌ People who like high-frequency trading and daily operations
  • ❌ Young people with small capital who can't afford losses
  • ❌ Perfectionists who need perfect signals and must have protection conditions

My Suggestions​

  1. Backtest first: Use 2+ years of data; see if you can handle it
  2. Paper trade first: Run live with small capital for 3 months
  3. Set stop-loss: Don't manually interfere; let the strategy execute the 32% stop-loss itself
  4. Read the market: Only open positions in clear trends; firmly don't open in ranging markets

9. What Markets Can This Strategy Make Money In?​

Chispei's money-making logic is extremely simple and brutal:

  • Trend starts → MA golden cross → Buy!
  • Trend ends → MA death cross → Sell!
  • Loss too big → 32% stop-loss → Admit defeat!

It doesn't care about fundamentals, news, anything — just looks at price and MAs, like a samurai with blinders on, only watching opponent's movements (price changes), ignoring everything else 👀

9.2 Performance in Different Markets (Plain English)​

Market TypeRatingPlain English Explanation
📈 Big surge⭐⭐⭐⭐⭐MA golden cross精准命中;躺着赚钱
📉 Big drop⭐⭐⭐⭐⭐Short selling also earns big with reversed logic
🔄 Ranging⭐⭐MAs cross back and forth; get whipped both ways
⚡ Wild swings⭐⭐⭐Volatility too high; stop-loss may get swept

Bottom Line:

"This strategy is a 'trend follower'; earns big when trends come, loses big when trends absent."

10. Want to Run This Strategy? Check These Configs First​

10.1 Trading Pair Configuration​

Config ItemSuggestedNote
Trading pairsBTC/USDT, ETH/USDTGood liquidity; stable trends
Timeframe4 hoursDon't change; strategy is designed for this
Wallet modeSpot or futures both OKRemember to short direction for futures

10.2 Key Config Settings​

# Strategy parameters
timeframe = '4h'
stoploss = -0.32336

# Take-profit table
minimal_roi = {
    "5127": 0,
    "1836": 0.676,
    "2599": 0.079,
    "120": 0.10,
    "60": 0.10,
    "30": 0.05,
    "20": 0.05,
    "0": 0.04
}

10.3 Hardware Requirements​

This strategy's computation is extremely light; computer requirements are very low:

Number of PairsMinimum RAMRecommended RAMExperience
1-10 pairs1GB2GBNo pressure
10-50 pairs2GB4GBEasy and pleasant
50+ pairs4GB8GBPiece of cake

Conclusion: Any old computer can run it; don't worry 🖥️

10.4 Backtesting vs Live Trading​

DifferenceImpactSuggestion
SlippageExecution price worseRelax both take-profit and stop-loss by 0.2%
False signalsMore in liveTry adding volume filter
LiquidityLarge capital hard to fill instantlyBuild positions in batches

Recommended Process:

  1. Backtest first: 3 years of data; at least 100 trades
  2. Paper trade: Run paper for 1 month
  3. Live with small: Use 10% capital first
  4. Gradually increase: Add capital after stable profits

Don't go all-in right away, this strategy's stop-loss is so high it'll kill you! 😱

11. Easter Egg: Strategy Author's "Little Tricks"​

Looking closely at the code, I found some interesting things:

  1. Ultra-long -32% stop-loss

    "I just don't believe trends can't recoup losses!"

  2. Mysterious 67.6% take-profit

    "The 1836-minute (~30 hour) time window... could it be the author's lucky number?"

  3. Code comments

    "There's a comment saying 'Maybe the success of a trading system is part of strategy and also a good config.json too!' — the author knows strategy and config are equally important!"

  4. Validation script

    "The file header says it's used to 'verify Freqtrade and TradingView backtesting results consistency,' so this is actually a test strategy?"

12. The Final Word​

One-Line Verdict​

"Simple, brutal trend strategy; a boss when trends come, a loser when trends absent"

Who's It For?​

  • ✅ Experienced old hands with psychological strength
  • ✅ Warriors who can handle 32% losses
  • ✅ Investors who like medium-long-term trends
  • ✅ Big capital bosses

Who's It NOT For?​

  • ❌ Beginner newbies (will be scared by stop-loss)
  • ❌ Conservative investors
  • ❌ Poor people with small capital
  • ❌ Traders who like daily operations

Manual Trading Suggestions​

This strategy is fully manual-tradable:

  1. Check 4-hour candles before daily close
  2. MOM < 15 + MA golden cross → Buy
  3. MOM < 80 + MA death cross → Sell
  4. Loss exceeds 32% → Blindly cut

Simple right? Even a kindergarten kid can learn it 👶

13. ⚠️ Risk Reminder (Must Read This Section)​

Backtesting Looks Good; Live Requires Caution​

Chispei's backtesting data may look pretty good — but!

This strategy's ROI table has a magical "67.6% take-profit" at 30 hours — clearly a backtesting overfitting result; 99% chance unachievable in live trading.

Simply put: Past performance doesn't guarantee future returns; don't assume past 67% gains will repeat!

Hidden Risks of High Stop-Loss​

-32% stop-loss means:

  • 3 consecutive losses = 70%+ loss: 100K becomes 30K 💸
  • Huge psychological pressure: Who can watch their account shrink and not panic?
  • Needs high win rate: Must exceed 70% win rate just to break even

My Suggestions (From the Heart)​

1. Don't trust the 67.6%; that's just a beautiful misunderstanding
2. Try with 10K first; run 3 months before deciding
3. Firmly don't open positions in ranging markets; don't fight money
4. Strictly follow 32% stop-loss line; don't hold through losses manually!
5. If you lose 3 times consecutively, pause for a week to cool down

Remember:

"Strategy is dead; market is alive. No matter how good the strategy, it dies without surviving 32% losses." 🪦

Final Reminder: This strategy is simple and brutal; earns big when used well, loses big when used poorly. Test with small positions; survival matters most! 🙏

Strategy Tip: If -32% stop-loss feels too brave, try changing to 20% yourself; though it'll reduce ability to catch big trends, can protect capital 😌