Dynamic Moving Average Grid with State-Based Long Entries and Exits

Summary

This grid method centers a trading band on a simple moving average, setting its upper and lower bounds by a proportional deviation. It divides the band into equally spaced levels and tracks whether each level has an open long position. In the source logic, a close below an unoccupied grid level triggers a long entry; a close above the next level can close the position associated with the previous level. The published parameters specify a 300-period average, a 3% deviation, and 15 grid levels.

The document presents the grid as suited to frequent price fluctuations and warns that prolonged weakness, poorly chosen settings, gaps, or moves across several levels can cause losses. Equal spacing and allocation are described as ways to limit individual position size, but the source does not show explicit capital allocation or gap-handling controls. Backtest settings name BTC/USDT futures over about a month, with no performance results reported. Adaptive bands, conditional stops, and other changes are suggestions rather than tested findings.

Key ideas

• The grid band is formed by scaling a moving average up and down by a set deviation.
• The source enters long positions below unoccupied grid levels and closes them after an upward move through an adjacent level.
• A Boolean state is maintained for each grid level to track open positions.
• Gaps and moves through multiple levels can produce losses that the described logic may not control.
• The published backtest settings specify BTC/USDT futures, but provide no reported results.

Tags

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