Dual Moving Average Pullback Entries with a Failsafe Stop

Summary

This long-only setup seeks a pullback while price remains above a longer-term simple moving average. The supplied source enters when the close is above the 200-period average but below the 10-period average, then exits when price moves back above the short average. An optional exit condition waits for a lower close. A failsafe stop is calculated from the recorded entry price, with the default stop percentage set to 10%; the code also includes date-filter inputs, although its date filter is hard-coded as true.

The accompanying discussion presents the method as a way to buy dips within a broader trend and suggests tuning the averages, stop, time filters, and additional volume or volatility filters. It lists a BTC/USDT futures backtest configuration from January 2023 to January 2024, but provides no performance figures. There is a mismatch between the prose and code: the prose says price is below the long average and above the short average, while the actual entry condition requires the reverse. That ambiguity should be resolved before testing or use.

Key ideas

• The source enters long when the close is above the 200-period average and below the 10-period average.
• The described exit occurs when price rises above the short average, with an option to require a lower close.
• A failsafe stop is based on a percentage decline from the recorded entry price.
• The prose reverses the moving-average relationship stated in the code, creating ambiguity about the intended setup.
• The published backtest configuration lists BTC/USDT futures dates but includes no performance results.

Tags

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