Moving-Average Crossover Trading with Fixed Stops and Profit Targets

Summary

This trend-following system generates long signals when a short simple moving average crosses above a longer one, and short signals on the reverse cross. The stated parameters use 74 periods for the short average and 70 for the long average. It sets a dollar stop offset and a profit target three times that distance, with a fixed trade size; the source implements these as stop and limit exits. Although the description mentions a trailing stop, the provided exit logic uses a fixed stop relative to the average entry price rather than a moving trail.

The published backtest configuration is for BTC/USDT futures on four-hour bars over about a year, but no returns, trade counts, or other performance evidence are included. The source also has inconsistencies: the narrative gives a different trade size than the parameter default, and the stated date window differs from the configured backtest dates while the code's date filter is always true. Moving-average lag and whipsaws in ranging markets are noted risks, and the short test description does not establish whether the settings generalize.

Key ideas

• The system takes long or short positions when the short and long simple moving averages cross.
• The stated exit plan combines a fixed dollar stop with a profit target three times as large.
• Despite the trailing-stop description, the source places a fixed stop from the average entry price.
• The published BTC/USDT four-hour backtest setup reports no performance results.
• The source's date filter and stated trade-size details do not align consistently with the description.

Tags

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