Dual HMA Trend Entries with Dynamic Take-Profit Exits

Summary

This strategy combines two Hull moving averages to enter trend positions and manage exits. It opens long when the close crosses above the 200-period HMA and short when it crosses below. A cross back through the 150-period HMA closes the corresponding position, so exits adapt to price movement instead of using a fixed profit target. The document also describes chart signals and configurable dates for historical evaluation.

The source gives the rules but reports no performance results. It presents the HMA as a lower-lag alternative to conventional moving averages, while acknowledging the familiar limits of trend systems: false signals in sideways markets, fixed parameters that may not suit every asset or timeframe, and potentially early exits during persistent trends. It also notes that the strategy lacks an independent stop-loss and position-sizing rules, leaving drawdown and exposure management unresolved. Suggested extensions include market filters, adaptive parameters, volume confirmation, and explicit risk controls.

Key ideas

• A close crossing above or below the 200-period HMA triggers a long or short entry.
• A cross through the 150-period HMA in the opposite direction closes the open position.
• The two HMA periods assign slower trend entry and faster profit-taking roles.
• The strategy has no separate stop-loss or position-sizing method, and may whipsaw in ranges.
• Backtest dates are configurable, but the document provides no measured performance results.

Tags

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