A Simple Moving Average Strategy for Bitcoin Perpetuals

Summary

This short strategy uses moving averages to set direction and manage exits on a Bitcoin perpetual futures market. It calculates 10-, 20-, and 30-period averages, though the trade rules use the 20-period average to choose a long or short position and the 10-period average to close it. When a new bar is detected, a close above the 20-period average triggers a long entry; a close below it triggers a short entry. An open long closes below the 10-period average, while an open short closes above it.

The document provides source code and published backtest settings for a five-minute interval over a stated 2021 period, but reports no performance results. It does not describe fees, slippage, position sizing beyond a fixed amount parameter, or safeguards for account-level risk. The third moving average is calculated but does not affect the stated rules. As presented, this is an illustrative indicator strategy, and the limited backtest information is insufficient to establish profitability or robustness.

Key ideas

• The strategy uses the 20-period moving average to choose a long or short position.
• Long positions close when price falls below the 10-period moving average.
• Short positions close when price rises above the 10-period moving average.
• A 30-period moving average is calculated but is not used in the trading rules.
• The document supplies backtest settings but no performance statistics or risk evaluation.

Tags

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