Dual Moving Average Crossovers with Fixed Percentage Exits

Summary

This long-oriented trend strategy uses 9-period and 21-period simple moving averages. It opens a long position when the shorter average crosses above the longer one and closes on a downward crossover. The rules also specify a 1% stop loss and a 1% take-profit level, providing fixed percentage exit thresholds alongside the crossover exit.

The document presents the method as an automated way to follow trends and notes that the averages and exit percentages can be adjusted. It warns that repeated crossovers in sideways markets can generate false signals, while slippage, abrupt reversals, and parameter sensitivity may affect outcomes. Suggested refinements include trend-strength or volume filters and volatility-adjusted stops. Backtest settings for ETH/USDT on a daily period are included, but no performance statistics or results are given. The source also describes the moving-average lengths as optimized for a 15-minute timeframe, whereas the published backtest period is daily, so the stated settings do not establish performance for either timeframe.

Key ideas

• A bullish crossover of the 9-period average above the 21-period average triggers a long entry.
• A bearish crossover closes the long position, while fixed percentage stop and target levels are also specified.
• Sideways conditions can cause repeated crossovers and false signals.
• The document lists daily backtest settings but reports no measured results.
• The source mentions a 15-minute optimization context, which differs from the listed daily backtest period.

Tags

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