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NotAnotherSMAOffsetStrategyModHO_LamineDz_20210901: Strategy Explained

1. What Does This Strategy Do?​

One-Line Summary​

"Buy when price dips below average in an uptrend, sell when price recovers or trend weakens."

Think of it as smart shopping — buy when prices are on sale, sell when they're marked up. The twist: only buy when the store (market) is generally heading up.

Name Meaning​

This is an MA Offset strategy developed by LamineDz in September 2021. The "NotAnother" part is the author's way of saying "I'm not just doing the same old thing" — this strategy really is different from basic MA crossover strategies.

2. Core Logic in Plain English​

The Idea​

  1. Find the "fair price" — using EMA
  2. Wait for a discount — price must be at least 1.6% below fair price (offset 0.984)
  3. Check the "vibe" — using EWO to confirm market direction
  4. Buy when conditions align
  5. Sell when trend weakens

3. When to Buy? Two Scenarios​

Scenario 1: Uptrend Pullback (EWO High Channel)​

When: Market was going up, but took a breather.

Conditions:

  1. Fast RSI < 35
  2. Price < EMA × 0.984 (1.6% discount)
  3. EWO > 3.206 (still bullish)
  4. RSI(14) < 63
  5. Volume > 0
  6. Price below sell line

Plain English: "Market's going up but took a dip — buy!"

Scenario 2: Deep Oversold (EWO Low Channel)​

When: Market crashed and everyone's panicking.

Conditions:

  1. Fast RSI < 35
  2. Price < EMA × 0.984
  3. EWO < -10.69 (deeply bearish)
  4. Volume > 0
  5. Price below sell line

Plain English: "Market's crashed hard — time to catch the falling knife!"

4. When to Sell? Two Conditions​

Condition 1: Made Money, Trend Still Up​

When: Price recovered and momentum is still strong.

Conditions:

  1. Price > SMA 9
  2. Price > sell EMA × 1.0
  3. RSI > 50
  4. Fast RSI > Slow RSI
  5. Volume > 0

Plain English: "Made money, trend still healthy — take profit!"

Condition 2: Trend Showing Weakness​

When: Price broke below HMA but still above baseline.

Conditions:

  1. Price < HMA 50
  2. Price > sell EMA × 1.002
  3. Fast RSI > Slow RSI

Plain English: "Trend weakening but still profitable — protect gains!"

5. Risk Control​

Stop-Loss​

  • 10% fixed — if it drops 10% from entry, sell automatically

Trailing Stop​

  • Activates at 3% profit
  • Follows price up at 0.75% below peak

Slippage Protection​

  • If execution price is 2%+ worse → reject and retry (up to 3 times)

Profit Only Sell​

  • Won't sell unless you're up 1%+
  • Prevents panic selling at small losses

6. Parameters​

ParameterDefaultMeaning
low_offset0.984Buy when 1.6% below MA
ewo_high3.206Must be in uptrend
ewo_low-10.69Deep oversold threshold
rsi_buy63RSI must be below this

7. Summary​

"Buy the dip when the trend is up, sell when it recovers or weakens. Five layers of protection keep you safe."

Best for: Trend-following traders who understand technical analysis and accept moderate risk.

Remember: Backtesting ≠ future performance. Trade only what you can afford to lose.