Moving Average Crossovers with Long-Term Trend Filters

Summary

This proposed automated system uses a 100-period moving average for entry and exit signals, with a 1,000-period average as a broad trend filter. Long entries occur when price crosses above the shorter average adjusted upward by a small percentage and price is above the longer average. Long positions close when price crosses below the shorter average adjusted downward. Short entries and exits use the mirrored conditions.

The code permits cumulative orders and submits market orders for one contract when the entry rules trigger. The author presents it as a beginner strategy and asks for help reducing false signals and drawdown. No instrument, chart interval, backtest, or measured results are given, so the document offers rules but no evidence that the filters improve performance. It also does not specify risk sizing or protective stops.

Key ideas

• A short moving average, adjusted by a percentage, defines price crossover entries and exits.
• A much longer moving average filters long and short entries by broad trend direction.
• The rules support both long and short positions with market orders.
• Cumulative orders are enabled in the described configuration.
• The author reports no testing results and identifies false signals and drawdown as concerns.

Tags

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