Dual-Entry Averaging with an Average-Price Trailing Stop

Summary

This BTC futures strategy starts with a long entry when price is below a 200-day simple moving average, during a specified daily time window. If price rises by 5% from the first entry without reaching its initial profit target, it adds a second, larger position. The stop is set at 1.15 times the average entry price, and separate profit targets apply to the first entry and the combined position.

The document explains the entry and exit logic and identifies risks from adding to a position, poorly chosen stop or target levels, and mistimed entries. It suggests testing alternative indicators, parameters, add-on sizing, trend filters, and entry times. The published backtest configuration covers a short period on BTC_USDT futures, but no performance results are provided. The claimed risk control and profitability are therefore not demonstrated; the strategy’s behavior depends on execution and parameter choices.

Key ideas

• The initial long entry requires price below the 200-day simple moving average during the specified time window.
• A second position is added if price rises 5% from the first entry before its profit target is reached.
• After the add-on, the stop is tied to the average entry price using a 1.15 multiplier.
• Adding exposure can increase losses if both entries reach the stop.
• The published backtest settings provide no performance results to validate the strategy’s claims.

Tags

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