Moving Average Crossovers with Partial Profit Taking and Stop Losses

Summary

This document explains a basic price-versus-moving-average crossover strategy. A close crossing above a simple moving average triggers a long order, while a cross below triggers a short order. The example uses a 100-period average and includes configurable take-profit and stop-loss distances. It also places a partial exit at a profit threshold calculated as a fraction of the full take-profit level, with the remaining position subject to the full exit rules.

The published settings describe a short BTC/USDT futures test using one-minute bars, but no return, drawdown, or trade statistics are given. The document identifies lag, false signals, missing market context, and unoptimized parameters as limitations. It suggests testing other average lengths or types, adding trend or indicator filters, and considering trailing or time-based stops. The basic rules are straightforward to implement, but the writeup does not establish that they are profitable, and actual outcomes may depend on order handling and transaction costs.

Key ideas

• Price crossing above or below a simple moving average triggers long or short orders.
• The example configures a partial profit exit before the full take-profit or stop-loss exit.
• The published example uses a 100-period moving average and one-minute BTC futures settings.
• The document reports no measured performance and notes lag, false signals, and sensitivity to parameter choices.

Tags

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