Dual Moving Average Trend Entries with Filter and Stop-Loss Options

Summary

This strategy uses a shorter moving average to trigger entries and a longer moving average to filter trade direction. It enters long when price crosses above the signal average while above the filter, and short when price crosses below while beneath it. Traders can choose SMA, EMA, or WMA calculations and set a percentage-based stop or a stop at the prior candle’s low or high. Exits use a fixed percentage take-profit, with entry, stop, and target levels intended for chart display.

The document describes the rules and configurable inputs but supplies no performance results. Its published settings specify a one-hour BTC/USDT futures backtest over roughly one month, without reporting its outcome. Moving-average lag can delay trades around reversals, while sideways markets may produce repeated false signals; results also depend on parameters, slippage, and trading costs. The fixed target may also close a trade before a strong trend continues.

Key ideas

• A short-period moving average supplies price-cross entry signals, while a longer-period average filters direction.
• Long entries require price to cross above the signal average and remain above the filter; short entries use the inverse conditions.
• Stops can use a percentage from entry or the previous candle’s low or high, while profit targets use a fixed percentage.
• The document gives no backtest results, and warns about lag, range-bound signals, parameter sensitivity, and trading costs.

Tags

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