BTC Four-Hour Long-Only Momentum Strategy with Swing Stops

Summary

This long-only BTC strategy seeks entries when several trend and strength filters agree: price must be above a long-term exponential moving average, that average must be rising, rate of change must exceed a threshold, and ADX must indicate trend strength. It places a stop at the lowest low over a configurable swing lookback and sets a profit target using a configurable reward-to-risk multiple. The script also plots signals and provides an alert condition.

The accompanying description frames the rules for four-hour charts and gives a three-to-one reward-to-risk target, while the code exposes the lookbacks and thresholds as inputs. The source sets initial capital, position sizing, commission, and slippage assumptions, but the document includes no strategy report or measured performance. As a result, it does not establish profitability or robustness. Results would depend on parameter choices, market regime, execution costs, and the use of a swing-low stop that can vary with volatility. The rules are limited to long entries, so they do not capture bearish periods through short positions.

Key ideas

• A long entry requires price above a rising exponential moving average, positive rate of change beyond a threshold, and ADX above its threshold.
• The stop is set at the lowest low across a configurable swing lookback.
• The profit target is based on a configurable reward-to-risk multiple.
• The script is designed for long-only BTC momentum trading and includes signal alerts.
• No performance report is supplied, so the document does not establish the strategy's profitability.

Tags

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