Moving Average Strength Scoring for Trend Following

Summary

This strategy scores the alignment of price and a set of moving averages to estimate trend strength. It awards weighted points when price stands above successive averages and when shorter averages exceed longer ones, then sums the score over a configurable lookback. A moving average of that accumulated strength acts as the signal line: crossovers can open or close positions, with optional direction checks and trade-direction settings.

The document presents the method as configurable across moving-average types and periods, and suggests it may suit trending markets. Its source includes both long and short entries, although the overview emphasizes long-only use. Published settings include a 10-period strength lookback and a 200-period index average; the backtest configuration names BTC/USDT futures over one month. No performance statistics are provided. The stated risks include reversals, drawdowns, and sensitivity to parameter choices, with volume confirmation and stop methods suggested but not assessed.

Key ideas

• Weighted comparisons among price and several moving averages produce a trend-strength score.
• The accumulated score is compared with its own moving average to generate crossover signals.
• The source permits long and short trades, despite the overview describing a long-only strategy.
• The example backtest setup provides no performance evidence, and reversal and parameter risks remain.

Tags

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