Dual-Moving-Average Entries with Triggered Percentage Trailing Stops
Summary
This strategy enters when a fast simple moving average crosses a slow one, then tracks the resulting long or short trend state. Its risk management uses a percentage trailing stop that activates only after price moves a specified amount in favor of the position. For longs, the stop follows rising lows; for shorts, it follows falling highs. A reversal through the tracked stop closes the position, while a crossover in the opposite direction changes the trend state and resets the trigger flags.
The code uses 15- and 45-period averages, a 3% trailing distance, and a 2% activation threshold by default. Published settings describe BTC/USDT futures over a period of roughly one year, but give no performance results. The accompanying discussion identifies lagging crossover signals and sensitivity to trigger and trail settings as limitations. It recommends testing parameters across products and volatility conditions; the strategy description does not establish that the chosen defaults are effective.
Key ideas
- Entries follow crossovers between fast and slow simple moving averages.
- A percentage trailing stop becomes active after a favorable price move reaches its trigger threshold.
- Long stops follow lows upward, while short stops follow highs downward.
- A stop breach closes the position, and a trend change resets the trigger state.
- The published settings describe a BTC futures backtest but provide no results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.