Schism Strategy: The "Tai Chi Master" of Bottom Fishing

Nickname: Tai Chi Grandmaster, Bottom-Fishing Philosopher, Trend Riding Expert
Profession: Specializes in picking "fallen into place" entry points, then riding trends all the way
Timeframe: 5 minutes (main arena) + 1 hour (God's eye view)

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1. What Is This Strategy?

Simply put, Schism is a strategy that:

• Doesn't chase highs, specializes in bottom fishing—but with a method
• Doesn't rush to sell after entering, holds on if the trend is good
• "Reads other people's faces"—senses other trades' status to decide whether to sell

Like a bottom-fishing expert who checks the big picture before entering, watches the trend while in, and looks at overall positions when selling 🎯

One-sentence summary:

"I bottom fish, but I'm not brainless about it; I hold positions, but I don't stubbornly hold; I stop loss, but I stop loss with technique."

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2. Core Configuration: Simply Put, "Layers of Defense"

Take-Profit Rules (ROI Table)

Holding Time        Profit Target
──────────────────────────────────
Just bought          10% (being greedy)
After 15 minutes     5% (quick in and out)
After 30 minutes     2.5% (cooling down)
After 1 hour         1% (that's about right)
After 2 hours        0.5% (even mosquito meat counts)
After 24 hours       0% (just don't lose money)

Translation:

• New positions, first think about making big (10%)
• The longer time goes, the lower the target—"If you're not trending, hurry up and rise. If not, I'm out"
• After 24 hours, "Fine, breaking even is okay too"

Stop-Loss Rules

Hard stop-loss: -40% (this is the bottom line)
Dynamic stop-loss: slowly tightens from -3% to 0%

Translation:

• Hard stop-loss -40%: This is the "life-saving charm", if it really crashes, accept it
• Dynamic stop-loss: Just opened position gives you -3% room, as time goes on it tightens, finally becomes "break-even stop-loss"

Key Setting

ignore_roi_if_buy_signal = True  # This is the soul!

Translation:

"If I'm still sending buy signals, it means the trend is still there, so ignore ROI for now, keep holding!"

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3. Two Buy Condition Groups: I've Categorized Them For You

This strategy's buy conditions come in two types: New Position and Position Continuation.

🎯 Type 1: New Position Buy (Bottom Fishing Signal)

Trigger Condition: Currently no position in this coin

Core Logic: Bottom fish, but don't blindly fish

Plain English:

"Price has fallen near the 3-day low, but don't be extreme. RSI can't be too miserable (can't be below 30), momentum indicators need to show 'fallen about enough', only then I'll make my move."

Specific Conditions:

1. RSI_1h >= 30          → "1-hour RSI hasn't fallen to extreme oversold"
2. Price <= 3-day low + 80% * daily volatility range
                         → "Bottom fish, but leave some safety margin"
3. RMI downtrend confirmed → "Confirm looking for reversal during downtrend"
4. RMI-slow >= 20        → "Momentum not too weak"
5. RMI-fast <= 20        → "Short-term momentum needs to be low (ready to bounce)"
6. Momentum Pinball <= 50 → "Momentum pinball indicator can't be too crazy"
7. Has volume            → "Someone needs to be trading"

Classic Lines:

• "Bottom fish when it's 'fallen enough', not when it's 'fallen to bottom'"
• "I look at 1-hour RSI, don't trick me with 5-minute"

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📈 Type 2: Position Continuation Buy (Trend Confirmation Signal)

Trigger Condition: Currently have position in this coin

Core Logic: Confirm the trend is still there, don't let ROI interrupt

Plain English:

"Since I'm already in position, let's see if the trend is still there. If still rising, ROI can wait, keep holding!"

Specific Conditions:

1. RMI uptrend confirmed      → "Trend still rising"
2. Current profit > peak profit * dynamic factor
                         → "Profit factor"—higher RMI means lower profit requirement
3. RMI-slow >= dynamic threshold → "Threshold grows with time: starts at 30 after 180 mins, reaches 70 after 720 mins"

Dynamic Factor Calculation:

profit_factor = 1 - (rmi_slow / 400)
# rmi = 30 → factor = 0.925
# rmi = 80 → factor = 0.80

Plain English Translation:

• Higher RMI (stronger trend) means lower profit requirement
• "Trend is this good, earning less is fine, keep holding!"

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4. Protection Mechanisms: 4-Layer "Anti-Stupid" Design

Each buy condition comes with a set of protection parameters, like 4 circuit breakers:

Protection Type	Function	Plain English
Hard stop-loss	Cut at -40%	"Fall to -40% and I accept my fate, survival first"
Dynamic stop-loss	-3% → 0%	"Longer holding time means tighter stop-loss"
Order timeout	Cancel if slippage > 1%	"Price running too fast, won't buy/sell"
Entry confirmation	Reject if slippage > 1%	"Confirm price one more time before ordering, don't get scammed"

Commentary:

Is this strategy afraid users will slip up? 4 layers of protection! But then again, with crypto volatility, extra protection is reassuring 🤣

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5. Sell Logic: Even More Refined Than Buying

5.1 Tiered Take-Profit: How Much to Make Before Running

Holding Time        Profit Target
──────────────────────────────────
0 minutes          10%       → "Just got in hoping to double? No, 10% is enough"
15 minutes         5%        → "15 minutes in, 5% is fine too"
30 minutes         2.5%      → "Half hour in, 2.5% works"
...and so on...
24 hours           0%        → "A day in, breaking even is fine"

But! There's a super important setting:

ignore_roi_if_buy_signal = True

Plain English:

"If position continuation buy signal is still there, ROI can stand aside! I'll keep holding!"

5.2 Dynamic Stop-Loss: Know When to Admit Defeat

Stop-loss threshold changes:
- Just opened: -3% (give you some room)
- After 300 minutes: 0% (break-even stop-loss)

Trigger Conditions:

1. Current profit < dynamic threshold (-3% to 0%)
2. Hasn't hit hard stop-loss (-40%)
3. RMI downtrend confirmed → "Trend broken"
4. Has volume
5. If was ever profitable: RMI crosses below 50 → "Trend weakening"
   If never profitable: RMI crosses below 10 → "This coin sucks, accept fate"

Plain English:

• "Short holding time, giving you -3% room; longer holding, break-even stop-loss"
• "If ever made money, use RMI 50 to judge trend weakening; if always losing, get out at RMI 10"

5.3 Global Position Awareness: Reading Other People's Faces

This is Schism's most unique feature: It looks at other trades' status!

if has other trades:
    if still have free slots:
        # More free slots means more willing to hold
        hold_pct = (1 / free_slots) * -0.04
        # 1 slot → other trades average profit >= -4% before selling
        # 4 slots → other trades average profit >= -1% before selling
    else:
        # Full positions! Only allow biggest loser to sell
        conditions += [I am the biggest loser]

Plain English Translation:

• "When there's room, I look at how other trades are doing. If everyone's losing, wait a bit; if only I'm losing, consider stopping out."
• "No room left? Biggest loser goes out first, make room for new opportunities."

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6. This Strategy's "Personality Traits"

✅ Strengths (Praise Section)

1. Principled bottom fishing: Not blind bottom fishing, but conditional and confirmed
2. Trend riding: Once in, if trend is good keep holding, won't easily be interrupted by ROI
3. Global perspective: Looks at all positions' overall state, not just "minding my own business"
4. Plenty of protection: 4 layers of protection mechanisms, slippage, stop-loss, timeout all covered
5. Dynamic adjustment: Stop-loss threshold, profit factor all dynamically change with time and trend

⚠️ Weaknesses (Complaint Section)

1. Only works in live trading: Can't use backtesting! ignore_roi_if_buy_signal and position continuation signals don't work in backtesting
2. Stop-loss too wide: -40% hard stop-loss, for conservative players this is too exciting
3. Database dependent: Needs to access database to query other trade status, if system crashes strategy goes dumb
4. Many parameters: 5 buy parameters, sell parameters... a bunch, bad optimization can lead to overfitting
5. High computation: Multi-indicator, multi-timeframe, multi-trade awareness, old machines might lag

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7. Applicable Scenarios: When to Use It?

Market Environment	Recommended Action	Reason
Slow bull market	Default configuration	Trend continuation mechanism dominates
Choppy market	Lower RSI threshold	Bottom fishing signals will trigger frequently, watch out for fees
One-sided crash	Use with caution!	Bottom fishing signals may trigger too early, wide stop-loss is risky
High volatility coins	Expand ADR	Adapt to larger volatility ranges

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8. Summary: How's This Strategy Really?

One-sentence evaluation

"This is a veteran live trader's strategy—principled bottom fishing, patient holding, skilled stop-loss, global decision making."

Who should use it?

• ✅ Traders with Freqtrade live experience
• ✅ Aggressive players who can accept -40% stop-loss
• ✅ People who like bottom fishing but don't want to "catch falling knives"
• ✅ Players who can handle database and system ops

Who shouldn't use it?

• ❌ Newbie beginners (strategy logic complex, only for live trading)
• ❌ Conservative players (-40% stop-loss too exciting)
• ❌ People who only want to backtest to verify (core features don't work)
• ❌ Players with low-spec VPS (high computation overhead)

My recommendation

1. dry_run for two weeks first: Familiarize yourself with strategy behavior, don't go live immediately
2. Start with small positions: Run 1-2 trading pairs first, see how it performs
3. Lower stop-loss: If you can't accept -40%, you can change it to -20% yourself
4. Optimize parameters: Default parameters might be optimized for specific coins, don't use directly

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9. What Market Can This Strategy Make Money In?

9.1 Core Logic: Bottom Fishing + Trend Riding + Global Coordination

Schism's money-making philosophy:

• Principled bottom fishing: Look at 1-hour RSI, look at 3-day price range, look at momentum indicators—not blind bottom fishing
• Trend riding: Once in, if trend is good keep holding, won't be interrupted by ROI
• Global coordination: Look at all positions' overall state, avoid misoperations when fully invested

9.2 Performance in Different Markets (Plain English Version)

Market Type	Performance Rating	Plain English Explanation
📈 Slow bull market	⭐⭐⭐⭐⭐	"This strategy is made for slow bulls! Bottom fish, ride to the top"
🔄 Choppy market	⭐⭐⭐☆☆	"Bottom fishing signals will trigger, but choppy back-and-forth might hurt from fees"
📉 One-sided crash	⭐⭐☆☆☆	"Bottom fishing might catch falling knives, wide stop-loss is risky"
⚡️ Rapid rise/fall	⭐☆☆☆☆	"Order protection might fail, high slippage risk, use with caution"

One-sentence summary:

"Rebound markets after oscillating declines are Schism's home turf; one-sided crashes and extreme volatility are its weak points."

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10. Want to Run This Strategy? Check These Configurations First

10.1 Trading Pair Configuration

Configuration Item	Recommended Value	Commentary
max_open_trades	3-5	Coordinate with global position awareness, don't open too many
stake_amount	Equal allocation	Don't play favorites, treat each trade the same
timeframe	5m	Native configuration, don't change
inf_timeframe	1h	Information layer configuration, don't change

10.2 Key Config File Settings

# config.json key configurations
{
    "max_open_trades": 3,
    "stake_currency": "USDT",
    "stake_amount": "unlimited",  # or fixed amount
    "dry_run": true,              # dry_run first!
    "dry_run_wallet": 1000,       # simulated funds
    "stoploss": -0.40             # consistent with strategy
}

10.3 Hardware Requirements (Important!)

This strategy has significant computation, has requirements for VPS:

Number of Trading Pairs	Minimum Memory	Recommended Memory	Experience
1-10 pairs	2 GB	4 GB	Smooth
10-30 pairs	4 GB	8 GB	Might be a bit laggy
30+ pairs	8 GB	16 GB	Old machines will struggle

Warning: Strategy needs database access to query other trade status, memory overhead is significant in multi-pair scenarios! 😅

10.4 Backtesting vs Live Trading

Big Pitfall Warning:

• ignore_roi_if_buy_signal and position continuation signals only work in live trading/dry run
• Cannot access Trade.get_trades() data during backtesting
• Backtesting results may differ significantly from live performance

Recommended Workflow:

1. First backtest to verify buy signal quality
2. Then dry_run to verify dynamic logic
3. Finally small position live trading
4. Don't go all-in based on backtesting results!

Don't go all-in right away, no matter how good the strategy, it needs to be磨合!

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11. Bonus: Strategy Author's "Little Thoughts"

Look carefully at the code, you'll find some interesting things:

1. Position continuation signal's elegance:

   "You think I just want to bottom fish? No, I also want to ride trends! ignore_roi_if_buy_signal = True is my secret weapon."

2. Dynamic stop-loss philosophy:

   "Give you room when just opened, tighten over time—this is punishment for 'gave you a chance but you didn't deliver'."

3. Global position awareness wisdom:

   "I don't just look at myself—I look at all positions' states. Full positions? Biggest loser goes out first. Have room? Wait and see."

4. Profit factor's mathematical beauty:

   profit_factor = 1 - (rmi_slow / 400) — Higher RMI means lower profit requirement. This is the power of trend.

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12. The Very End

One-sentence evaluation

"Schism is a 'principled bottom fisher'—doesn't blindly bottom fish, doesn't stubbornly hold, stops loss with technique, makes decisions globally."

Who should use it?

• ✅ Freqtrade players with live experience
• ✅ People who want to bottom fish but fear "catching falling knives"
• ✅ People who can handle complex logic and multi-trade coordination
• ✅ Players with decent VPS specs

Who shouldn't use it?

• ❌ People who only want backtest verification (core features don't work)
• ❌ Conservative players (-40% stop-loss too exciting)
• ❌ Newbie beginners (strategy logic complex)
• ❌ Single trading pair players (global awareness meaningless)

Manual Trader Recommendations

Schism's core concepts can be borrowed:

• Momentum-confirmed bottom fishing: Look for reversals during RMI downtrend, don't chase highs
• Trend riding: After entering, if trend is still there, don't rush to sell
• Dynamic stop-loss: Longer holding means tighter stop-loss
• Global perspective: Look at all positions' overall state, don't just stare at one

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13. ⚠️ Risk Emphasis Again (Must Read This Section)

Backtesting Is Beautiful, Live Trading Be Careful

Schism's historical backtesting performance is often impressive—but this has a trap:

Because core features (position continuation signals, global position awareness) don't work in backtesting, backtesting results may be seriously distorted!

Simply put: What backtesting shows is not the real strategy behavior.

Hidden Risks of Complex Strategies

During live trading, complex logic may lead to:

• Database access latency: Querying other trade status takes time, might be too slow in extreme markets
• Order timeout failure: Order book data lag, slippage protection might not work
• Memory overflow: Multi-pair scenarios, memory usage might exceed limits
• Parameter overfitting: Default parameters might be optimized for a certain period, might not apply to the future

My Advice (Real Talk)

1. dry_run for at least 1-2 weeks first, observe strategy behavior
2. Small position live trading, initial capital not more than 10% of total
3. Stop-loss can be lowered to -20% first, consider relaxing after adapting
4. Monitor system resources, ensure VPS won't lag
5. Record trading logs, regularly review

Remember: No matter how good the strategy, the market will humble you without warning. Light position testing, survival is most important! 🙏