Moving Average Crossovers with a Fixed 1% Profit Target

Summary

This crossover system calculates 10-period and 30-period simple moving averages and opens a long position when the faster average crosses above the slower one. It also opens a short position on a downward cross, according to the source code. A configurable profit target is set to 1%, though the document's prose chiefly describes this target for long trades. The published BTC/USDT futures setup spans roughly five and a half months, but no return, drawdown, or trade-count results are included.

The method is simple to implement and may align trades with sustained price moves, but moving averages lag and can generate repeated false signals in sideways markets. The document itself notes that no stop loss is included, leaving losses potentially open-ended. It suggests testing alternate periods, adding a loss limit, or combining indicators; none of those improvements is evaluated here. The source's short-entry behavior also means the implementation is not strictly a long-only golden-cross strategy as the overview may imply.

Key ideas

• A 10-period simple moving average crossing above a 30-period average triggers a long entry.
• The source also opens a short position when the faster average crosses below the slower one.
• A 1% profit target is configurable, but the prose focuses on its use for longs.
• No stop loss is specified, and sideways markets may produce whipsaws.
• The listed backtest setup gives no performance statistics to assess the strategy.

Tags

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