Customizable Moving Average Crossover Strategy with Optional Shorting

Summary

This strategy generates directional signals from the crossover of two configurable moving averages. Traders can choose simple, exponential, weighted, or relative averages and set a separate period for each. A cross of the faster average above the slower one opens a long position; a downward cross either opens a short position or closes the long, depending on whether shorting is enabled.

The document presents a simple rules-based approach and lists published backtest settings for Bitcoin against USDT futures over a stated date range, using daily strategy bars with hourly base data. It provides no performance metrics, so those settings alone do not establish profitability or robustness. The described implementation has no explicit stop-loss or take-profit rule. Its stated limitations include lagging signals, frequent false crosses in sideways markets, sensitivity to average types and periods, and higher trading costs from over-trading.

Key ideas

• The strategy compares two moving averages whose types and periods can be selected independently.
• An upward fast-average cross opens a long position.
• A downward cross opens a short if shorting is enabled; otherwise it closes the long.
• The published settings identify a Bitcoin futures test configuration but include no reported performance results.
• The basic rules lack explicit protective exits and may whipsaw in sideways markets.

Tags

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