Dual Moving Average Slope Confirmation for Trend Following

Summary

This trend-following method combines a fast and a slow moving average, with example periods of 10 and 30. It classifies each average by whether it is rising or falling compared with the previous bar. When both point upward, the strategy adopts a long bias; when both point downward, it adopts a short bias. If their directions disagree, it retains the previous trend state. Traders can choose whether to enable long and short trades, and the averages may use simple or exponential calculations.

The document explains the logic and gives a BTC/USDT futures backtest setup covering about a year of daily bars, but it provides no performance statistics. The method may filter some short-term noise, yet moving averages lag sharp moves and can generate false direction changes. The source also uses full-equity position sizing by default and has no built-in stop-loss or take-profit rules, leaving individual trade losses less constrained. Suggested adjustments include adding exits, sizing rules, or other indicators; their effects are not demonstrated.

Key ideas

• The strategy compares the slopes of fast and slow moving averages, with example periods of 10 and 30.
• It takes a long or short trend state when both averages slope in the same direction.
• When the averages disagree, the previous trend state is retained.
• The source permits simple or exponential averages and configurable long-only or short-only trading.
• The described implementation defaults to full-equity sizing and lacks built-in stops, while the backtest setup reports no performance results.

Tags

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