ALMA Short Add fired: ~$0.2619–$0.2525 (25.03).
Short Score: -2.8. Starting there, because it's the main thing to explain.
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Why the strategy is short and why the score disagrees:
The ALMA Averaging Strategy fires SHORT when the LONG series exceeds its average. 12H: Cur L=6, Avg L=3.6 → 1.67× overheat . The bounce from $0.22 to $0.26 ran longer than average — strategy is selling the rally.
The Short Score at -2.8 is red because the Deviation component = -9.3 . ONDO is BELOW its EMA on 1D, 1H, 3D, and 4H simultaneously. When you short something that's already below its EMAs, the deviation framework penalizes it — the EMA says the dip is already extended. VWAP Resistance (+2.5) and 4H ALMA Overheat (+3.8) are positive, but the deviation drag is dominant.
So: the ALMA strategy sees an overheated bounce on the 12H/1H. The Long Score framework sees deep structural weakness below EMAs. Both are correct about different things. What you're doing here is selling the STF bounce within a macro bear trend — not a reversal short from strength.
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The main conflict in the data:
Pro SHORT (12H averaging strategy):
- 12H: Cur L=6, Avg L=3.6 → 1.67× overheat → signal active
- 1H EMA: Cur L=22, Avg L=9.5 → 2.32× overheat — the 1H long session running more than twice its average
- VWAP from swing high at $0.2618 acting as resistance — price is testing it right now
- 4H ALMA Overheat contributing 3.8 to Short Score
- 1D: FVG New Bear at $0.2600 (21.03) overhead
- 1D MS Trend Up at $0.2890 (16.03) — structure pivot above current price, not reclaimed
Against SHORT (longer-term mean reversion):
- 3D EMA: Cur S=57, Avg S=5.4 → 10.56× overheat on the 3D SHORT series — ONDO has been below its 3D EMA for 57 consecutive periods vs. an average of 5.4. This is extreme. It screams buy, not sell.
- 1D EMA: Cur S=8 vs Avg S=34.8 — 1D short series just started, long way from average
Wait: 1D has been building for months. From the Cur S chart, 1D short series is ~65 bars, Avg S~34.8 → 1.87× overheated on the 1D
- 1W: Cur S=27, Avg S=13.6 → 1.99× overheat on 1W SHORT series
- The Cur S chart shows the 1D short series is the longest sustained bear run visible in the dataset
The 3D at 10.56× is the number that will haunt this trade if it resolves upward. Keep that in mind.
Previous SHORT cycles on ONDO (same strategy, chart 1):
- SHORT closed +24.58%
- SHORT closed +14.27%
- SHORT closed +17.205%
- SHORT closed +9.735%
Four of the visible closed short cycles were profitable. The strategy has edge on ONDO for shorts.
Backtest (ALMA Avg, ONDO, 2 years):
- 176 trades | WR: 59.09% | PF: 1.285
- Total return: +40.38%
- Max drawdown: 34.85%
- Avg profit: 10.64% | Avg loss: -7.82%
WR under 60% — more losses than wins by count, but wins are larger (+10.6% avg vs -7.8% avg). PF 1.285. Two years of data, decent edge.
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Strategy mechanics (ALMA Avg, 12H):
Entry condition: each 12H bar where ALMA signal = LONG and (Cur L − Avg L) ≥ 1. Currently: Cur L=6, Avg L=3.6 — condition met. Short adds firing.
Position sizing: 25% of equity per bar. Max 4 adds.
Exit condition: ALMA flips to SHORT and the SHORT series becomes overheated: (Cur S / Avg S) ≥ 1.1. The strategy doesn't exit on the flip — it waits for the subsequent short phase to extend past average.
Hard stop: 10% from average entry price. At avg entry ~$0.264: Hard SL ≈ $0.290.
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The core bet: the 12H/1H bounce is ending, the market returns to the macro downtrend, and the short series (currently not extended on the 12H) begins to build — at which point the strategy exits profitably.
The counter-bet: the 3D series at 10.56× resolves and ONDO reverses hard, stopping out the short. That's the risk. $0.290 Hard SL is where that becomes real.