Bitcoin Triple SMA Trend Filter for Long and Short Trades

Summary

This Bitcoin strategy combines two simple moving average relationships with a longer trend filter. It enters long when the fast average is above the slow average and the closing price is above the trend average; it enters short when the fast average is below the slow average and price is below the trend average. The published default periods are 3, 48, and 168 bars. Positions close when the fast and slow averages reverse their relative ordering.

The document provides Pine Script settings for trading with 99% of equity and a stated commission of 0.05%, along with a brief description of the approach. It does not provide a backtest period, performance results, or risk analysis. The written rules describe crosses, while the code checks whether the averages are above or below one another; those conditions can remain true across multiple bars. The method is therefore a rule outline rather than evidence of profitability, and the selected chart timeframe affects the real durations represented by its periods.

Key ideas

• Long entries require the fast SMA to exceed the slow SMA while price is above the trend SMA.
• Short entries require the fast SMA to be below the slow SMA while price is below the trend SMA.
• Positions close when the fast and slow averages reverse their relative ordering.
• The published default SMA periods are 3, 48, and 168 bars.
• The document supplies no backtest results, and the code uses persistent relative-position conditions rather than explicit crossover events.

Tags

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