MA100 Retracement Zones for a Staged Grid Strategy

Summary

This long-only grid framework uses a 100-period simple moving average as its reference. It adds positions when price reaches retracement levels 8%, 15%, and 20% below that average, subject to zone-specific trade limits and a minimum interval of 50 bars between trades in a zone. The exit condition is a rise to 3% above the moving average. The document gives a daily BTC/USDT futures backtest configuration, but no performance statistics or results.

The staged entries are intended to build exposure during substantial pullbacks, while trade limits and delays constrain how quickly positions accumulate. The main risk is a persistent decline, which can leave the strategy with growing exposure and large drawdowns. It also requires capital for multiple entries, uses fixed percentage thresholds, and may exit before a larger advance develops. The source code's shared open-trade count and repeated order identifiers mean the stated zone limits may not operate as independently as the description suggests. Proposed trend filters, dynamic thresholds, and overall exposure limits remain untested suggestions.

Key ideas

• The strategy uses the 100-period moving average to set three retracement entry thresholds.
• Trade limits and 50-bar delays are intended to constrain repeated entries in each zone.
• The exit condition is a move to 3% above the moving average.
• A sustained decline can build exposure and cause substantial drawdowns.
• The document provides backtest settings but no results, and its code may not enforce zone limits independently.

Tags

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