Moving-Average Crossovers with Session Filters and Trailing Stops

Summary

The document describes a trend-following system built around a short average and a longer average. Its overview specifies a 5-period EMA crossing a 34-period DEMA: an upward cross signals a long entry and a downward cross signals a short entry. It also discusses restricting trades to a chosen session and managing exits with fixed profit and loss distances or a trailing stop. The included test settings refer to BTC perpetual futures over a one-month sample, but provide no performance statistics.

The source code differs from that plain description: both averages are calculated with a zero-lag EMA formula, and entries can also occur when price crosses the short average while it is aligned with the long average. The code includes session checks, a take-profit condition, and either fixed or trailing stop logic. The text flags whipsaws in ranging markets and lag from poorly chosen lengths; the short test window and lack of reported results do not demonstrate robustness or profitability. Session, price-source, and exit settings would need evaluation across assets and market regimes.

Key ideas

• The overview uses an upward short-average cross for long entries and a downward cross for short entries.
• The described parameters pair a 5-period EMA with a 34-period DEMA.
• The source code calculates both averages with a zero-lag EMA formula and adds price-cross entry conditions.
• Session filtering and fixed or trailing exits are configurable parts of the implementation.
• Ranging markets can cause false signals, while average lengths can affect signal delay.

Tags

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