Long-Only Pivot Reversal Entries with LSMA Filtering

Summary

This strategy combines confirmed pivot highs with a least-squares moving average (LSMA) filter for long entries. After a pivot high is identified, it tracks that level and places a stop entry just above it when the close is above the LSMA. A date window, position sizing based on equity and leverage inputs, and a lower pivot based closing condition shape the backtest and exits.

The description says the defaults target BTC/USDT on a two-hour chart and include a 0.1% commission assumption. The document provides implementation details but no performance report or evidence that the rules are profitable. Pivot confirmation uses bars to the right of the high, so signals arrive after the pivot forms; results may depend on instrument, timeframe, fees, and parameter choices. The exit logic closes a long when a pivot low is detected, rather than specifying a conventional protective stop below that low.

Key ideas

• Long entries require price to be above a least-squares moving average and a confirmed pivot-high setup.
• The entry is a stop order placed just above the tracked pivot high.
• Position quantity is calculated using equity, a leverage input, and a risk percentage.
• A detected pivot low triggers closure of the long position.
• The script offers date-range controls but reports no strategy performance evidence.

Tags

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