14- and 28-Period SMA Crossovers with Percentage-Based Exits

Summary

This strategy uses a 14-period and a 28-period simple moving average to generate directional signals: an upward crossover indicates a long, while a downward crossover indicates a short. The description specifies a 2% stop loss and a 4% take-profit level, with fixed trade allocation. It also lists possible refinements, including volatility-based stops, filters, and drawdown limits.

The published backtest settings cover hourly BTC/USDT futures on Binance from October 2024. No results or performance statistics are included, so the claimed benefits are not substantiated by reported evidence. There is also a mismatch between the explanation and the source: the source passes stop and limit prices to entry orders, rather than clearly placing separate protective exits, and calculates both levels from the current close for either direction. Traders should verify order behavior and test costs, slippage, and short-side handling before drawing conclusions.

Key ideas

• The strategy uses 14-period and 28-period SMAs to produce long and short crossover signals.
• The description gives a 2% stop loss and a 4% take-profit target.
• The published test settings specify hourly BTC/USDT futures on Binance for October 2024.
• No backtest performance statistics are reported.
• The source code’s order handling does not clearly match the described stop-loss and take-profit exits.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.