Customizable Moving Average Crossover Trading in Long-Short or Long-Only Mode
Summary
This strategy generates long entries when a faster moving average crosses above a slower one, and short entries when it crosses below. Each average can be selected independently from EMA, SMA, WMA, DEMA, or VWMA, and users can adjust the periods and input price series. A long-only mode instead closes the long position on a downward crossover. Chart colors and markers display crossover events and the relative direction of the averages.
The document provides Binance BTC/USDT futures backtest dates and intervals but no performance evidence. It cautions that crossovers can give misleading signals, particularly when market direction is unclear, and that shorting increases loss exposure. Suggested additions include stop-loss rules, position sizing, re-entry conditions, and volatility signals; none is demonstrated as tested. The source sets order size to 100% of equity, making position management a notable consideration when evaluating the example.
Key ideas
- A faster and slower moving average crossover drives directional entries.
- Five moving average types and several price inputs are available for configuration.
- Long-only mode closes a long position at a downward crossover.
- The strategy includes chart cues but no built-in stop-loss rule.
- Crossover noise and large position sizing are important risks to assess.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.