Moving Average Crossovers with a Long-Term Trend Filter
Summary
This strategy uses short- and long-period simple moving averages to identify crossovers, then checks a still longer moving average to filter entries. A bullish crossover can open a long position only when the long-term average is rising. A fixed percentage profit target closes winning positions, while a bearish crossover exits only if the position has already reached a minimum profit threshold.
The document explains the rules and risks but provides no performance results. It warns that crossover signals can mislead in complex or sideways markets and that static profit and exit thresholds may not fit changing conditions. It suggests adding indicators or channel analysis and making exits responsive to market conditions. The published settings describe a Bitcoin futures test window, but do not report its outcome; the source also sets the trade window to always on, so the stated date filter may not constrain execution as described.
Key ideas
- A short moving average crossing above a longer one signals a potential long entry.
- A rising long-term moving average acts as a filter for long entries.
- A fixed profit threshold and a bearish crossover govern position exits.
- Crossover signals can produce false entries, especially in complex or sideways markets.
- The document gives backtest settings but reports no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.