A Moving-Average Reversal and Recent-Range Breakout System

Summary

This formula-based trading system combines a displaced moving average with recent crossover patterns and price-range levels. It identifies a buy setup when price crosses above the shifted average under conditions involving recent crossings in both directions, then places a fixed-share purchase when there is no current holding and trading volume is positive. The sell condition triggers when the low reaches the higher of a reversal level and a trailing low drawn from recent bars.

The formula also defines a counterpart downward-cross setup and a recent-high level, though the shown buy and sell rules do not use those definitions. Position size is derived from a fixed cash amount relative to the closing price and rounded to board-lot increments. The document supplies no backtest results, market specification, cost assumptions, or explanation of how its holding variables and bar-count logic behave in live use, so the rules require implementation checks and independent testing.

Key ideas

• The system uses a shifted moving average and recent crossover history to define a buy setup.
• A buy is submitted only when the setup is active, volume is positive, and the strategy is not holding a position.
• The sell trigger compares a reversal level with a trailing low based on recent bars.
• Position size is calculated from a fixed cash allocation and rounded to board-lot increments.
• The formula provides no performance evidence, trading-cost assumptions, or detailed live-execution guidance.

Tags

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