Dual SMA Crossover Entries with Percentage Stops and Targets

Summary

This template uses a fast and slow simple moving average crossover to generate long and short entries. The stated defaults are 14 and 28 periods: crossing above the slower average signals long, while crossing below signals short. Before entering in the opposite direction, the strategy closes the existing position. It also includes configurable compounding, position sizing based on available capital, a trading date window, and percentage-based take-profit and stop-loss controls.

The document identifies lagging signals and whipsaws in ranging markets as key limitations, and suggests testing alternative average lengths, adding other indicators, and changing exit rules. The published test configuration uses BTC/USDT futures with four-hour bars from late October to late November 2023, but no performance metrics are supplied. The source warrants care: its exit calls pass calculated price levels into parameters named as profit and loss distances, and the short exit references the long entry identifier. These implementation details may make actual behavior differ from the written explanation; parameter tuning alone cannot establish robustness.

Key ideas

• A 14-period SMA crossing above or below a 28-period SMA triggers directional entries.
• Opposite positions are closed before a new position is opened.
• Position size is based on trading capital, with optional compounding and percentage exits.
• Crossovers can lag and generate repeated losses in sideways markets.
• The source’s exit parameter usage and short-entry reference may not match the described intent.

Tags

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