Dual SMA Crossovers with Percentage-Based Stops and Targets

Summary

This system uses a short-period and a long-period simple moving average to generate both long and short signals. A cross above triggers a long position, while a cross below triggers a short position; an opposing position is closed before the new direction is entered. The example parameters set the short average to 9 periods and the long average to 21, with a 1% stop and a 2% profit target. Market orders are used, and alerts are generated when signals occur.

Stops and targets are calculated as percentages of the signal bar’s closing price, so the risk levels scale with price but do not adapt to current volatility. The document explains the basic rules and lists choppy markets, slippage, false breaks, and moving-average parameter sensitivity as risks. It reports no performance statistics. The published backtest settings refer to BTC/USDT futures on an hourly interval over October 2024, but those settings alone do not show results or establish robustness. The source and description therefore provide an implementable outline, not evidence that the method is profitable across markets or regimes.

Key ideas

• A short SMA crossing above a long SMA triggers a long entry, and crossing below triggers a short entry.
• The strategy closes an opposing position before entering the new direction.
• Each trade uses percentage-based stop-loss and take-profit levels referenced to the signal close.
• Market orders and alerts are part of the implementation, with slippage identified as a risk.
• No reported backtest results support claims about profitability or robustness.

Tags

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