Long-Only Pivot Reversals Filtered by a Least-Squares Moving Average

Summary

This long-only approach combines pivot levels with a least-squares moving average (LSMA) filter. It looks for a pivot high formed using recent bars and places a long entry when price is above a 20-period LSMA; a later pivot low supplies the stated exit condition. The description frames the upper pivot as a reversal or breakout signal and uses the LSMA to avoid taking entries below the trend filter. Position size is based on account equity, leverage, and a risk input in the supplied implementation.

The document provides no reported returns or other measured outcomes. Pivot highs and lows require right-side bars for confirmation, so the signal can arrive after the turning point; the stated 16-bar right setting makes that timing delay relevant. The strategy also has no explicit stop-loss in the shown logic and cannot benefit from falling prices because it only takes long positions. The backtest settings identify a BTC/USDT futures period, but the document gives no results that would establish robustness or account for live trading costs.

Key ideas

• A long entry requires a confirmed pivot high and a close above the LSMA filter.
• The strategy closes the long position when a pivot low condition is observed.
• Pivot confirmation uses bars to the right of the turning point, which can delay signals.
• The described implementation is long-only and does not show an explicit stop-loss.
• The supplied backtest period has no accompanying performance results.

Tags

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