Combining T3 Moving Averages and Bollinger Bands for Trend Signals

Summary

This strategy combines a smoothed T3 moving average, a medium-term simple moving average, and faster and slower T3 averages to form trend-filtered entries. A long entry is described when the medium-term SMA crosses above the T3 basis while the fast T3 is above the slow T3; the short setup reverses those conditions. Bollinger Band levels and further crossings are used to close positions. The source also defines stop entries around the bar high or low, which adds detail beyond the prose account.

The document gives parameters and a BTC/USDT futures test setup over a short October-to-November 2023 interval, using 10-minute strategy bars and a 1-minute base period. It supplies no performance metrics or evidence that the approach is profitable. The stated limitations include lag from smoothing, sensitivity to selected periods and band settings, and exits that may occur too early or late. Trend-strength filters, volatility adjustments, and trailing stops are proposed for further investigation.

Key ideas

• T3 smoothing is used alongside medium- and long-term moving averages to filter price noise and define trend direction.
• Long and short entries combine a medium-term SMA and T3 crossover with the relative direction of faster and slower T3 averages.
• Bollinger Band crossings and additional moving average crossings provide exit signals.
• The source uses stop entries near the bar high or low, while the narrative describes these more generally as trend-based entries.
• The short published test setup includes no performance statistics, and parameter lag and sensitivity remain key concerns.

Tags

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