Golden-Cross Trend Entries with Moving-Average Risk Sizing

Summary

This BTC strategy uses a 50-day and a 200-day simple moving average. It enters long when the shorter average crosses above the longer one and closes when price falls below the 200-day average. The described risk framework sets a stop 1.5% below the longer average and calculates position size from account equity and the distance between entry price and stop. The narrative specifies a 2.5% equity risk budget per trade.

A daily BTC-USDT futures backtest configuration is given for a multi-year period, but no performance results are reported. The source’s risk percentage matches the narrative’s 2.5%, despite a contradictory inline comment that says 1.5%; readers should verify implementation details. Moving-average lag, false crosses in sideways markets, gaps through stops, and trading costs may weaken results or cause realized risk to exceed the planned amount. The document suggests filters and broader market diversification but does not test them.

Key ideas

• A bullish crossover of the 50-day average above the 200-day average triggers a long entry.
• The exit rule closes the position when price falls below the 200-day average.
• Position size is calculated from an equity-based risk amount and the entry-to-stop distance.
• The stated risk budget is 2.5% of equity, while an inline source comment conflicts with that figure.
• The daily backtest configuration reports no results, and gaps can exceed planned stop risk.

Tags

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