Moon Phase Signals for Alternating Long and Short Trades

Summary

This strategy uses calculated lunar phase age to alternate between long and short positions. It identifies phase transitions around the new and full moon, then opens a position in the selected direction and closes it when the opposite signal appears. Users can reverse the direction mapping, enable either side, choose a backtest start time, and display phase and trade markers.

The document describes the signal rules and configurable chart display, but provides no performance results or evidence that lunar phases predict market returns. Its published backtest settings specify BTC/USDT futures and a one-hour period over January 2024; this is a setup description, not a reported outcome. The source also uses a phase-age threshold around 15 days and carries position state between signals. The stated limitations include slow signals, no stop-loss mechanism, and potential large losses. The authors suggest adding filters, stop losses, and position sizing, so the approach should be treated as an unvalidated timing rule rather than an established source of trend prediction.

Key ideas

• The strategy calculates lunar phase age and uses new and full moon transitions as trade signals.
• Users can choose which phase opens long positions and which opens short positions.
• Positions are closed when the opposite phase signal occurs.
• The document reports no evidence of profitability and identifies the lack of a stop loss as a major risk.
• It recommends testing additional filters and adding position and loss controls.

Tags

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