200-Day SMA Strategy for Buying Above or Below the Trend

Summary

This long-only strategy uses the close relative to a 200-day simple moving average to select an entry mode. In the uptrend mode, it buys when price is above the average, with an additional check that price was also above it five bars earlier. In the downtrend mode, it buys when price is below the average. Both modes use configurable stop-loss and take-profit multipliers and also define a closing threshold around the moving average.

The document describes the approach as simple and adaptable, but supplies no reported returns or other performance evidence. Published backtest settings specify BTC/USDT futures over roughly one year. The source code’s exits, based on comparisons with the average entry price and a limit order at the current close, merit careful review before interpreting the prose description as exact behavior. The single-indicator design can produce false signals, and the document notes that fees, slippage, parameter selection, and signal confirmation need attention.

Key ideas

• The strategy offers separate long-entry modes for prices above or below a 200-day SMA.
• The uptrend mode also requires price to have been above the average five bars earlier.
• Stop-loss, take-profit, and moving-average-related exit thresholds are configurable.
• Published settings describe a BTC/USDT futures backtest, but no results are reported.
• Single-indicator signals and unmodeled trading costs limit conclusions about live performance.

Tags

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