MA99 Touch Entries with Two-Candle Confirmation Stops

Summary

This strategy uses a 99-period simple moving average as both an entry reference and a stop level. A candle that spans the average can trigger a long when it closes above the average, or a short when it closes below it. A position closes after two consecutive closes beyond the average in the adverse direction, making the stop condition depend on confirmation rather than an immediate intrabar touch.

The document explains the rules and discusses possible benefits, including a simple trend filter and reduced sensitivity to short-term price noise. It also warns that prices can cross the average repeatedly in choppy markets, and that parameter choice, reversals, slippage, and fees may impair results. Published backtest settings specify BTC/USDT futures over roughly a year of daily bars with hourly base data, but no performance statistics are reported. The code stores the MA value from entry as the stop level, so it does not trail with subsequent changes in the average; this limits the description of the stop as dynamic.

Key ideas

• A candle touching the 99-period simple moving average can trigger an entry based on its close relative to the average.
• Long and short positions close after two consecutive adverse closes beyond the stored moving-average level.
• The rules may generate repeated trades when price oscillates around the average.
• The document gives backtest settings but does not report returns or other measured results.

Tags

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