Dual Moving Average Trend Following with ATR Stops and Higher-Timeframe Filtering

Summary

This document describes two selectable long-only moving average approaches. The basic mode enters when a fast simple moving average crosses above a slower one, then uses either a percentage or point-based profit target, with an optional trailing exit. The advanced mode adds a higher-timeframe moving average filter and an ATR-based stop distance, alongside a partial profit-taking order. The prose gives example averages of 21 and 49 periods for the basic mode and a 14-period ATR for the advanced mode.

The material discusses the trade-offs of crossover lag, false signals in ranging markets, ATR adjustment during volatility spikes, and partial exits that can reduce exposure before a trend extends. The supplied source only defines long entries; it does not show a short-entry rule. It also provides settings for a multi-year BTC-USDT futures backtest without reporting performance results. Accordingly, claims about reliability or risk control are descriptions of intent, not demonstrated outcomes, and the proposed further filters remain unevaluated.

Key ideas

• The basic mode enters long when a fast simple moving average crosses above a slower average.
• The basic mode offers profit targets and an optional trailing exit.
• The advanced mode filters entries with a higher-timeframe average and sets a stop using ATR.
• The source implements long entries and does not specify a short-entry condition.
• The listed multi-year BTC-USDT futures backtest has no reported performance statistics.

Tags

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