Dual SMA Breakouts with Slope Filters and Trailing Stops

Summary

This trend-following strategy calculates moving averages of highs and lows, then looks for price to cross those bands with a sufficiently large slope. A close above the high-based average, with the required positive slope and additional price conditions, triggers a long entry; a corresponding move below the low-based average can trigger a short entry. The slope filter is intended to suppress signals during sideways markets. The strategy also sets an initial profit target and a stop based on a percentage of the current close, and closes positions when an opposite signal appears.

The document provides configurable inputs and published daily BTC/USDT futures backtest dates, but gives no measured performance, benchmark, or trade-by-trade evidence. Its claimed filtering and risk benefits therefore remain unsubstantiated. The text acknowledges sensitivity to parameters, reversals, choppy conditions, and slippage. It proposes volatility-based adjustments, market filters, volume checks, and further stop design as possible improvements; none are evaluated in the supplied material.

Key ideas

• The strategy uses moving averages of highs and lows as breakout thresholds.
• Price crossings qualify only when the relevant average has a sufficiently strong slope.
• The system pairs entries with a profit target, a close-based stop, and exits on opposing signals.
• The supplied backtest dates identify a BTC/USDT futures test but include no outcome statistics.
• The document identifies parameter sensitivity, choppy markets, reversals, and slippage as limitations.

Tags

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