Classic Moving Average Crossovers with Confirmation and Stop Losses

Summary

This educational strategy uses separate moving-average crossover rules for entering and exiting positions. Entry requires the fast and slow averages to remain crossed for a configurable observation period. While a position is open, a second pair of averages controls exit confirmation; a price-based stop loss can also close the trade. Position allocation, polling interval, and the entry and exit periods are configurable. The published defaults include fast and slow entry periods of 5 and 15, an allocation ratio of 0.8, and a stop-loss ratio of 0.05.

The document supplies a six-month BTC/USD backtest setup on Bitfinex, but reports no performance results or trade analysis. It explicitly frames the example as instructional and advises caution in live use. The source depends on a trading template library, and its logic does not provide evidence that the selected parameters or risk controls will work across instruments or market conditions.

Key ideas

• Entry signals use a fast and slow moving-average crossover confirmed over an adjustable observation period.
• A separate moving-average pair and confirmation period govern exits.
• A price move against the entry by the configured stop-loss ratio can also trigger an exit.
• Position allocation and polling interval are configurable.
• The published BTC/USD backtest setup has no reported results, and the example is presented for instruction.

Tags

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