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NotAnotherSMAOffsetStrategy_uzi Strategy Analysis

1. Strategy Overview​

1.1 Background​

NotAnotherSMAOffsetStrategy_uzi is a quantitative trading strategy based on SMA Offset principles, developed by Rallipanos for the Freqtrade framework. The strategy's core innovation is the "offset" concept — rather than waiting for price to cross the MA, it buys when price falls below MA by a certain percentage.

1.2 Core Positioning​

  • Trading style: Mean reversion + trend confirmation
  • Timeframe: 5 minutes
  • Buy logic: Two independent conditions (ewo1, ewolow)
  • Sell logic: Two conditions (trend continuation, momentum exhaustion)
  • Stop-loss: -7%
  • Trailing stop: 0.5% distance, activates at 3% profit

2. Technical Indicators​

2.1 MA System​

  • EMA: base_nb_candles_buy=14, base_nb_candles_sell=24
  • HMA_50: Mid-term trend, low lag
  • SMA_9: Short-term trend

2.2 EWO​

EWO = (EMA_fast - EMA_slow) / Close × 100

fast=50, slow=200. Thresholds: ewo_high=2.327, ewo_low=-20.988

2.3 RSI​

  • RSI(4): Fast entry
  • RSI(14): Standard
  • RSI(20): Slow exit confirmation

3. Entry Signals​

3.1 ewo1 (Trend Pullback)​

RSI_fast < 35 AND Close < EMA × 0.975 AND EWO > 2.327
AND RSI < 69 AND Volume > 0

3.2 ewolow (Extreme Oversold)​

RSI_fast < 35 AND Close < EMA × 0.975 AND EWO < -20.988
AND Volume > 0

4. Exit Signals​

4.1 Trend Continuation​

Close > SMA_9 AND Close > EMA × 0.997 AND RSI > 50
AND RSI_fast > RSI_slow AND Volume > 0

4.2 Momentum Exhaustion​

SMA_9 rising fast AND Close < HMA_50 AND Close > EMA × 0.991
AND RSI_fast > RSI_slow AND Volume > 0

4.3 Exit Confirmation​

if (HMA_50 × 1.149 > EMA_100) and (Close < EMA_100 × 0.951):
    return False  # Reject exit

5. Risk Management​

5.1 Stop-Loss​

stoploss = -0.07  # -7%

5.2 Trailing Stop​

trailing_stop = True
trailing_stop_positive = 0.005
trailing_stop_positive_offset = 0.03

5.3 ROI​

minimal_roi = {
    "0": 0.215,   # 21.5%
    "40": 0.032,  # 3.2%
    "87": 0.016,  # 1.6%
    "201": 0
}

5.4 Sell Profit Only​

sell_profit_only = True
sell_profit_offset = 0.005  # Min 0.5% profit

6. Parameters​

ParameterDefaultRange
base_nb_candles_buy145-80
low_offset0.9750.9-0.99
ewo_high2.3272.0-12.0
ewo_low-20.988-20.0--8.0
rsi_buy6930-70
base_nb_candles_sell245-80
high_offset0.9910.95-1.1
high_offset_20.9970.99-1.5

7. Pros & Cons​

Advantages​

  • Clear entry logic: buy cheap, sell expensive
  • Dual buy signals adapt to different markets
  • Multi-layer risk control (stop-loss, trailing, ROI)
  • Sell only when profitable
  • Strong stop-loss discipline

Limitations​

  • -7% stop-loss still significant
  • Long only, no shorting
  • Parameter optimization needed
  • Ranging market vulnerability

8. Summary​

NotAnotherSMAOffsetStrategy_uzi is a well-designed strategy combining mean reversion with trend confirmation. Its tight -7% stop-loss and smart trailing mechanism make it suitable for traders seeking disciplined risk management. Best for medium-term trend-following in crypto markets.