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Moving Average Crossovers at Supply and Demand Zones

Article Strategy library · Author: ianzeng123

Summary

This system combines a short and long simple moving average crossover with nearby supply or demand levels. It describes entering long after an upward crossover near a demand zone and short after a downward crossover near supply. Zones are identified from prominent highs or lows over a lookback period, while percentage-based stop-loss and take-profit levels are calculated from the average entry price.

The document specifies example defaults and backtest settings for ETH_USDT, but supplies no outcome statistics. It notes that crossovers may give false signals in choppy markets, fixed percentage exits may not suit changing volatility, and trading near zones can incur slippage. Position sizing is not included. The source's zone and crossover logic provides a concrete illustration, though its zone tests are simplified and the claimed dynamic risk adjustment is actually based on fixed percentages. The method therefore needs careful implementation review and broader testing before its performance can be judged.

Key ideas

  • The strategy filters moving average crossover entries by proximity to a supply or demand zone.
  • Zones are based on recent significant highs and lows with a confirmation condition.
  • Stop and target levels are set as percentages of the average entry price.
  • No performance results are shown, and fixed stops, slippage, and missing position sizing are limitations.

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