Flexible Moving Average Crossover Strategy with Stop and Target Exits
Summary
The strategy compares two configurable moving averages: one calculated from closing prices and one from opening prices. A cross of the close-based line above the open-based line signals a long entry; a cross below signals a short entry. It offers twelve average types, including simple, exponential, weighted, volume-weighted, Hull, least-squares, and smoothed variants, alongside options for alternate timeframes and delayed inputs.
Stop loss and take profit can be specified in points, and trades can be restricted to long or short positions. The document provides a BTC/USDT futures backtest configuration but reports no performance results, so it does not establish profitability. It also warns that moving averages lag and that poor parameter choices can produce excess or redundant signals. The source explicitly flags repainting concerns around its alternate-timeframe handling, so results from this implementation require particular caution. Suggested next steps include testing average combinations, adding filters, and controlling position size.
Key ideas
- A configurable moving average is applied separately to closing and opening prices to form the signal pair.
- A crossover above the open-based average signals long, while a crossover below it signals short.
- The strategy includes optional point-based stop losses and profit targets, as well as direction and timeframe settings.
- Lagging averages and parameter sensitivity can cause delayed entries, excess trades, or false signals.
- The source warns that alternate-timeframe calculations may repaint, and the published backtest settings include no performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.