Dual Exponential Smoothing Trend Signals with Fixed Risk Levels

Summary

This system transforms price using a weighted combination of the high, low, and close, then computes two custom exponentially weighted averages with short and long lookback windows. A crossover of the faster curve above the slower one signals a long entry; a downward crossover signals a short entry. The described defaults are 9 and 30 periods. It also specifies fixed point profit targets and stop losses, with risk controls enabled by default and position sizing described as using 100% of account equity.

The document gives a BTC/USDT futures backtest configuration spanning about a year, but includes no performance metrics or evidence that the approach worked. Its own caveats include false signals in ranging conditions, possible slippage, and the risk of large exposure. Fixed exit distances may not suit changing volatility, and the smoothing method's custom weighting and implementation deserve independent validation before use.

Key ideas

• The method smooths a weighted high, low, and close price series over short and long windows.
• Crossovers between the two smoothed series determine long and short signals.
• Fixed point profit targets and stop losses are included as optional risk controls.
• The stated default uses 100% of account equity, which may create substantial exposure.
• The backtest configuration is reported without performance statistics, and ranging markets may produce false signals.

Tags

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