This strategy is named "Trend Retracement Trading Strategy Based on RSI Indicator". It uses the RSI indicator to gauge overbought/oversold levels, and combines optimized parameter settings to trade pullbacks and catch local reversals within strong trends.

The RSI indicator judges if prices are overbought or oversold. RSI above 70 suggests overbought state, while below 30 is oversold. This strategy generates sell signals when RSI reaches 96, and buy signals when RSI breaks below 4. These optimized parameters are better suited for capturing temporary reversals within strong trends compared to traditional RSI levels.

After entry, the strategy utilizes profit taking and stop loss mechanisms. Long positions are closed when RSI rebounds to 80 after reversal, and short positions closed when RSI drops to 20, effectively locking in retracement profits. Trailing stop loss also ensures capital preservation after entry.

The advantage of this strategy is utilizing RSI's sensitivity in judgementesulting trend pullbacks and reversals, and improving performance through parameter optimization and profit taking/stop loss. However, no single indicator is perfect, and trend, support and resistance analysis should be combined.

In conclusion, the RSI is a simple and practical tool for gauging overbought/oversold conditions. Through parameter optimization and strict risk management, its effectiveness can be enhanced for trend retracement trading. But traders still need flexibility in strategy adjustment, as different markets require different parameter settings.