Dual SMA Crossover with Percentage-Based Exits

Summary

This strategy follows moving-average crossovers using a shorter and longer simple moving average. A cross of the shorter average above the longer one opens a long position; a downward cross opens a short. At entry, the strategy calculates profit-taking and stop-loss prices from the closing price and preset percentages, then closes when the close reaches either level. The stated defaults are 50 and 100 periods, with a five percent profit target and three percent stop.

The document presents the approach as a simple trend-following framework and notes that chart labels and plotted levels support visual review. It gives BTC/USDT futures test settings on an hourly interval for May 2024, but no outcomes or performance statistics. The source checks exits using closing prices, so it does not establish intrabar execution behavior. The document also flags lagging signals, false crosses in range-bound markets, fixed-percentage levels, and unmodeled trading costs as limitations.

Key ideas

• The shorter SMA crossing above or below the longer SMA triggers long or short entries, respectively.
• Profit and stop levels are calculated from the entry signal's closing price using preset percentages.
• The source closes positions when a bar's close reaches either level.
• The published BTC/USDT futures test settings contain no reported performance results.
• Lag, ranging markets, fixed exit percentages, and transaction costs may impair results.

Tags

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