Dual Moving Average Crossovers Filtered by a 50-Day Trend Average

Summary

This document presents a trend-following approach built around crossovers between 9-period and 14-period simple moving averages. A bullish crossover is intended to open a long position when price is above the 50-period average; a bearish crossover permits a short position when price is below that average. The longer average acts as a directional filter for the faster signals.

Published test settings specify BTC/USDT futures on Binance, daily bars, and an hourly base period over about a year, but no performance figures are reported. The description says the filter may reduce misleading short-term signals, while acknowledging that crossovers can lag during sharp declines and repeatedly reverse in sideways markets, increasing costs. There is also a mismatch between the explanation and supplied strategy logic: the code opens positions on filtered crosses and includes a timed close after five bars, while the prose describes selling on a bearish cross. Suggested refinements include parameter testing, added signal filters, and stop-loss rules; their effects are not demonstrated.

Key ideas

• A 9-period and 14-period moving average crossover supplies the short-term directional signal.
• Price relative to the 50-period average filters long and short entries.
• The documented test settings concern BTC/USDT futures, but no backtest outcomes are presented.
• Crossovers may be late in fast markets and can churn in ranges, creating costs.
• The source code includes timed position closes that are not reflected in the written explanation.

Tags

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