Cross-Timeframe Moving Average and MACD Breakout Strategy

Summary

This strategy combines a stack of smoothed and exponential moving averages with MACD to take long or short positions. It describes using the ordering of three shorter SMMA lines, a longer SMMA, and an EMA as a trend filter, while requiring price to sit above or below the full stack. The published code also restricts new entries to a London morning session and exits positions outside the broader London window.

The document proposes MACD for timing entries, but the displayed entry conditions do not actually reference MACD; they rely on moving average alignment and price position. A BTC/USDT futures backtest configuration is supplied for a short historical interval, but no performance results are reported. The stated risks include lagging averages, false signals, and sensitivity to instrument and timeframe. It suggests testing parameters and adding volatility filters or ATR-based stops; the code includes fixed profit and loss distances, while its calculated position size is not passed into the entry orders.

Key ideas

• The moving average stack is intended to define the medium- and long-term direction.
• Long entries require price above an ascending average stack, while short entries require price below a descending stack.
• The narrative describes MACD as an entry-timing tool, but the shown entry logic does not use MACD.
• Entries are limited to a session window, and positions are closed outside the broader session.
• The document gives no performance results and flags lag, false signals, and parameter sensitivity.

Tags

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