Long-Only SMA Crossover with Fixed Profit and Loss Levels

Summary

This long-only trend-following strategy enters when a short simple moving average crosses above a longer one. The described periods are 9 and 21, and the strategy sets a profit target 1.5% above the entry price and a stop 1% below it. The accompanying source implements the crossover entry and percentage-based exit levels. Published backtest settings identify BTC-USDT futures on daily bars with hourly base data over a stated date range, but no performance statistics are supplied.

The document presents moving-average smoothing as a way to reduce short-term noise and participate in an emerging uptrend. It also notes that crossover signals can lag or produce false breakouts, while fixed exit distances do not adapt to volatility. Suggested improvements include filtering signals with other indicators, using trailing exits, and adjusting risk levels with volatility measures. The brief test configuration alone cannot establish robustness across markets or regimes.

Key ideas

• A long entry is triggered when the 9-period SMA crosses above the 21-period SMA.
• The stated exit levels are a 1.5% profit target and a 1% stop below entry.
• The strategy is presented as a simple way to follow an emerging trend after smoothing price data.
• Crossover lag, false signals, and fixed exits are identified as limitations.
• The published backtest settings provide no reported performance results.

Tags

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