TSI.LTA | Base BTC 1D

TSI.LTA | Base BTC 1D is a closed‑source trend‑following strategy designed for BTC on the 1D timeframe.
It focuses on participating in the main directional moves of the market while avoiding as much short‑term noise as possible.

📊 The script:

Uses a combination of moving‑average–based filters and volatility bands to define the active trend.
Applies optional volume filters to avoid low‑participation or exhausted moves.
Includes risk‑management controls (Stop Loss, Take Profit, Trailing Stop) that work on a per‑trade basis.
All entries and exits are confirmed at bar close and the script does not repaint.
This makes it suitable for backtesting, alerts and external automation.

█ 💡 CONCEPTS

This strategy is built around a few simple ideas:

1 — Trend first.
Positions are only taken when a group of smoothed trend filters agree on direction.
The goal is to ride larger swings, not to scalp each fluctuation.

2 — Volatility awareness.
Standard‑deviation–based bands help avoid entries in abnormal spikes or during very compressed ranges.

3 — Participation filter.
Optional volume‑based conditions (VWMA, OBV slope, MFI, volume Z‑score) try to ensure that entries occur when the market shows enough activity, not during dead phases.

4 — Risk defined in advance.
Stop‑loss and trailing‑stop inputs are expressed as percentages relative to entry price, so users can align them with their own risk tolerance.

The logic is purposely conservative: it is expected to stay flat during parts of the market where the trend is unclear or participation is weak.

█ ⚙️ FEATURES & INPUTS

This section follows approximately the order of the script’s inputs, so users can read here and then match what they see in the “Inputs” tab.

1 — 📐 Trend filters

These inputs control how the strategy detects the underlying trend:

DEMA / Gaussian / SMMA lengths
Control how fast or slow the trend reacts to price changes.
Shorter lengths → more responsive, more trades, more noise.
Longer lengths → slower reaction, fewer trades, more filtering.

Volatility Bands (SD length & multipliers)
Standard‑deviation bands around the smoothed price series.
They are used to avoid entries during extreme moves or very narrow ranges where a breakout is not yet confirmed.
In practice, these settings let the user choose between a more “aggressive” trend follower (shorter lengths, smaller bands) or a more “patient” one.

2 — 📊 Volume filters (optional)

These filters are meant to restrict trades to periods where the market shows meaningful participation:

VWMA filter
Requires price to be aligned with a Volume‑Weighted Moving Average, which de‑emphasizes moves on very low volume.

OBV slope filter
Uses the slope of On‑Balance Volume to check that net volume flow supports the direction of the trade.

MFI band filter
Uses the Money Flow Index to avoid taking new entries in zones that often correspond to exhaustion (extreme values defined by the user).

Volume Z‑Score
Compares current volume to its recent history. Trades can be restricted when volume is unusually low or out of character for that period.

When any of these filters are turned off, the strategy relies only on price‑based trend and volatility logic.
When they are on, trades are more selective and may be fewer.

3 — 🛡️ Risk management

These inputs define how individual trades are managed once entered.
They do not change the trend logic itself:

Stop Loss (%)
A percentage move against the entry price that will close the position.
Typical values on BTC 1D remain in the single‑digit range so that no single trade risks an unrealistic portion of equity.

Take Profit (%)
An optional fixed target that closes the trade when price has moved a chosen percentage in favor.
This can be disabled if the user prefers to let the trend filters perform the exit.

Trailing Stop (%)
A stop that follows the most favorable price reached since entry.
When the “use lower timeframe peak” option is enabled, peaks can be detected on a lower timeframe for more granular trailing, while decisions still occur at the close of the 1D bar.

Fixed SL/TP Price and Activation Date
Allow defining absolute price levels and a date from which they start applying.
This is useful when the user wants structural protection around known price zones.
The combination of these controls determines how deep a pullback the user is willing to tolerate and how much profit they are prepared to give back in order to stay in trends.

4 — 🚫 Filter failure & cooldown

To avoid over‑trading in difficult environments, the script can:

Automatically exit when filters remain unfavorable for a configurable number of bars.

Enter a cooldown period, during which no new trades are taken, even if some conditions improve.

These mechanisms are intended to protect capital during choppy or low‑quality phases rather than force constant exposure.

█ 📚 HOW TO USE

A suggested process for using this strategy as a study tool:

1 — Start on BTC 1D.
Apply the script to BTCUSD or BTC/USDT on the 1D timeframe, with default inputs.

2 — Open the Strategy Tester.
Choose a time window (for example a full halving cycle, a crash + recovery period, or just the most recent bull leg).

3 — Compare with Buy & Hold.
For the same window, look at:

Net profit of the strategy vs Buy & Hold.
Max drawdown of the strategy vs Buy & Hold.
The goal is not to hit a particular number, but to see whether, in that window, the strategy manages to:

Provide a smoother equity curve (lower drawdown),
While still performing at least as well as, or better than, simply holding the asset.

4 — Experiment with risk inputs.
Vary Stop Loss, Trailing Stop and the volume filters.
After each change, re‑check the same two questions above. This should make clear how each input affects the trade‑off between participation and risk.

5 — Forward‑test.
Before using any configuration with real capital, let it run for a while in paper‑trading or demo conditions.

█ 🚧 LIMITATIONS

The strategy is built and tuned primarily for BTC on 1D.
It can be used on other symbols and timeframes, but behavior may differ and requires new testing.
In very tight ranges or during event‑driven gaps, trend logic may enter later than discretionary trading would. This is expected for a conservative trend‑following approach.
Results from historical backtests depend on data quality, broker settings, fees and slippage configured in the Strategy Tester.

█ 📝 NOTES

Signals are generated on bar close.
The script is closed‑source, but the description explains the main ideas so users and moderators can understand what it does and how to use it.
The HUD on the chart is meant as a compact summary of the same statistics available in the Strategy Tester; it simply makes comparisons quicker.

█ ⚠️ DISCLAIMER

This strategy is provided for educational and research purposes only.
It is not financial advice and does not recommend any specific trades, assets, position sizes, or risk levels.

Users are fully responsible for:

Choosing their own risk parameters (Stop Loss, Take Profit, Trailing Stop, position sizing, etc.).
Testing the script on the markets and timeframes they intend to trade.
Verifying that any configuration is appropriate for their capital, risk tolerance and jurisdiction.
Past performance in backtests or examples does not guarantee future results.
Always test carefully before considering any live deployment.