A 9/20 SMA Crossover with Candle Confirmation

Summary

This long-only trend-following method tracks 9-period and 20-period simple moving averages. After the faster average crosses above the slower one, it waits for a bullish candle that closes above the fast average before entering. The position is closed when price falls below the 9-period average. A persistent crossover flag prevents repeated entries from the same upward cross, and the document includes a short BTC/USDT futures backtest configuration.

The approach is simple to implement, but moving averages lag and can whipsaw in sideways markets, increasing trading costs. The document gives no backtest performance results, and its prose suggests selling after a bearish candle following a downward cross, while the supplied logic closes whenever price is below the fast average. It recommends testing parameters and considering filters, position sizing, and stop or profit rules, but those additions are not part of the described implementation.

Key ideas

• A 9-period SMA crossing above a 20-period SMA arms a potential long entry.
• Entry requires a bullish candle closing above the fast average.
• The implementation closes the long position when price drops below the fast average.
• The method is vulnerable to lag and repeated whipsaws in sideways markets.
• The published backtest setup has no accompanying performance results.

Tags

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