Dual Moving Average Pullback Entries with a Long-Term Trend Filter

Summary

The strategy combines a long-term EMA with a short-term EMA to enter long positions on a pullback. It requires the close to be above the long EMA but below the short EMA, with no open position. The supplied defaults are 75 periods for the long EMA and 9 for the short EMA, and the strategy uses the full account balance per trade. It exits after a qualifying close relative to the short EMA or when a stop threshold is exceeded.

The document recommends comparing moving average lengths and price inputs, adding volume or volatility filters, and evaluating stop settings. It warns that frequent signals can lead to poor entries, that moving average settings affect sensitivity, and that a loose stop can allow larger losses. The published setup uses BTC/USDT Binance futures, 1-hour strategy bars and 15-minute base bars during December 2023; no performance results are supplied. The prose’s exit description is inconsistent with the code’s sell condition, and its claim that the stop measures retracement from a high does not match the code’s calculation from buy price.

Key ideas

• Long entries require the close to be above the long EMA and below the short EMA while flat.
• The setup uses a full-account position and a stop based on the entry price in the code.
• The stated exit rule and the implemented condition do not agree, so the exit logic needs careful interpretation.
• The cited BTC/USDT test configuration reports no outcomes.

Tags

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