Moving Average Breakout Entries with Seven Average Types

Summary

This strategy uses the relationship between a selected moving average and price to take one-way entries. It offers seven average types: simple, exponential, volume-weighted, double exponential, triple exponential, Kaufman adaptive, and a price-channel midpoint. A trend state changes when price crosses the average; the strategy then enters long or short when that state reverses. An optional setting makes the signal require the full candle to clear the average rather than relying only on the close.

The document explains the rules and lists a BTC/USDT futures backtest configuration, but reports no performance results, so it provides no evidence of profitability. Its main limitation is whipsaw: prices oscillating near the average can trigger repeated false or reversing signals. Average type and length also affect signal lag. The notes suggest testing parameters, adding other indicators and stop losses, and using an order approach intended to follow a developing trend. These are proposed refinements, not validated improvements.

Key ideas

• The strategy changes its trend state when price crosses a chosen moving average.
• It supports seven average calculations, including adaptive and price-channel variants.
• A stricter option requires the candle’s range to clear the average before the trend state changes.
• Sideways price action can generate repeated false signals, while parameter choices affect lag.
• The published backtest settings do not include performance results.

Tags

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