A 9-Day and 21-Day Moving Average Crossover Trend Strategy
Summary
This trend-following strategy compares 9-day and 21-day simple moving averages. A cross of the shorter average above the longer one opens a long position; a cross below closes it. The strategy also tracks trade counts and win/loss counts as a basic way to monitor activity. Its rules rely only on closing prices and moving averages, with no additional entry filters or stop-loss mechanism described.
The document gives backtest settings for ETH/USDT on Binance from May to December 2024, but includes no reported return, drawdown, or trade statistics. The monitoring logic therefore should not be taken as evidence of profitability. The stated limitations include lagging entries and exits, false signals in ranging markets, fixed parameters, and exposure to large losses during volatile periods. Adaptive average lengths, volatility filters, additional indicators, and dynamic stops are proposed as future improvements, not as validated additions.
Key ideas
- The strategy opens a long position when the 9-day average crosses above the 21-day average and closes it on a downward cross.
- It uses a simple moving average crossover and does not describe a short entry or stop-loss rule.
- A trade counter and win/loss counters are included, but the document reports no backtest outcomes.
- The stated test configuration uses ETH/USDT on Binance from May to December 2024.
- Ranging markets, crossover lag, fixed parameters, and volatility-related losses are identified risks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.