Combining MOST with Dual Moving Average Crossover Signals

Summary

This document presents a trend-following method that pairs fast and slow simple moving averages with a MOST indicator. A fast-average crossover above the slow average is described as a buy signal, and a downward crossover as a sell signal. The written explanation says MOST helps assess overbought or oversold conditions and can filter trades during volatile price action.

The included code plots a MOST series calculated as the highest close over its lookback, but its entry rules use only the moving-average crossovers; it does not apply MOST as a trade filter. The document supplies BTC/USDT futures backtest settings and default parameter values, but reports no performance results. It notes that crossover systems can struggle in ranging markets, that results depend on parameter choices, and that trading costs and slippage can erode returns. Proposed extensions include dynamic parameters, stops, and position management.

Key ideas

• The strategy uses a fast and slow moving average crossover to define directional entries.
• The description presents MOST as an overbought or oversold filter, but the supplied entry logic does not use it.
• The code defines MOST as the highest close over a selected lookback period.
• Ranging markets, parameter choice, slippage, and transaction costs are identified as limitations.
• The document provides backtest settings but does not report performance results.

Tags

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