Configurable Moving Average Crossover Rules for Trend Trading
Summary
This document describes a configurable trend-following strategy built around two moving averages, each selectable as a simple or exponential average. Traders can choose whether entries and exits use price crossing either average or the fast average crossing the slow one. Long and short trading can be enabled independently, and the parameters include a strategy date window. The central idea is to use a faster average moving above a slower one as a bullish signal and the reverse as bearish evidence.
The source includes default average lengths and date-window settings, alongside published BTC/USDT futures backtest settings for a short September 2023 interval. It supplies no performance statistics, so there is no evidence here that any configuration is profitable. The accompanying discussion warns that crossover signals lag and can whipsaw in sideways markets, and suggests testing parameters, adding filters, and setting stops. In the published source, the date-window inputs are not used to gate trades, which limits what can be inferred from those settings.
Key ideas
- The strategy allows two SMA or EMA series and configurable crossing rules for long and short signals.
- A fast average crossing above the slower average is treated as bullish, with the reverse used as bearish evidence.
- Long and short trades can be toggled independently, and average lengths can be varied.
- Crossover signals can lag and produce repeated false signals in ranging markets.
- Published backtest settings contain no reported performance results, and the source does not apply its date-window inputs to trading.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.