Dual Moving Average Crossover Signals with Fixed Percentage Exits

Summary

This document outlines a moving-average trend-following system that generates a long entry when a short simple moving average crosses above a longer one, and closes the long when it crosses back below. The stated defaults are five and twenty-one periods. It also describes a stop loss of one percent and a take profit of two percent, plus chart labels, an equity plot, and alerts intended to support monitoring and automation.

The document includes a BTC/USDT futures backtest setup spanning April through December 2024, using a three-day chart interval, despite describing the system as intraday. It reports no performance statistics, so the setup alone does not establish profitability. The source applies the exit levels using the current close, which may make them move over time rather than remain anchored to entry as the prose suggests. Sideways markets can produce repeated false crosses; costs, slippage, and sensitivity to the chosen periods are also noted limitations.

Key ideas

• A long signal occurs when the shorter simple moving average crosses above the longer one.
• A downward crossover closes the long position in the described implementation.
• The stated stop and target percentages are applied through exit orders tied to the current close.
• The published test configuration uses a three-day interval, not an intraday interval.
• No performance results are provided, and sideways markets can generate repeated false signals.

Tags

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