Moving-Average Trend Adds and Candlestick-Based Position Reductions

Summary

This Bybit perpetual-futures strategy uses fast and slow moving averages, closing prices, and recent candle direction to manage a single long or short position. A long setup requires the close to be above both averages and the fast average to be rising; the short setup mirrors this with prices below both averages and a falling fast average. It normally adds a configured amount, increases the add after a run of opposing candles, and reduces exposure after a run of candles in the trade direction. A maximum position limit constrains new entries, and the strategy can stop after a configured number of bars, optionally clearing positions.

The document describes operational choices such as market versus limit orders, leverage, and interactive restart or trend/range mode switching. It provides no backtest results or evidence of profitability. Position sizing is expressed in contract value and depends on account settings; the source also notes testing on a demo environment and warns of risk. The candle-count logic and description of trend conditions should be checked carefully before use, and the strategy gives no complete risk model for losses or liquidation exposure.

Key ideas

• The strategy uses fast and slow moving averages with closing-price and fast-average direction checks to define long or short conditions.
• It adds exposure normally and increases an add after a specified run of candles against the position.
• A run of candles in the position direction triggers a configured position reduction.
• A maximum position and a bar-count exit are configurable, with optional position clearing on exit.
• The document supplies operating parameters but no backtest evidence or complete account-level risk analysis.

Tags

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