Moving-Average Trend Entries with Partial Profit Taking and Trailing Exits
Summary
This strategy enters long when a fast simple moving average crosses above a slower one. After entry, it sets a take-profit threshold relative to the entry price and closes a configured portion of the position when price reaches it; the example setting is 50%. If trailing is enabled, the take-profit level follows rising prices in steps. Once the take-profit threshold has been reached, a trailing stop also tracks the high price at a specified percentage distance. A pullback through that stop closes the remaining position at market.
The document outlines configurable moving-average lengths, profit target, partial-close amount, trailing step, and stop distance. Its published backtest settings cover BTC perpetual futures over a short date range, but no results or performance statistics are included, so the strategy’s effectiveness cannot be judged. The description itself notes risks from reversals, lagging exits, wide stops, trading costs, and slippage. The stated logic is long-only and does not establish how it performs across other markets or conditions.
Key ideas
- A fast moving average crossing above a slow one triggers a long entry.
- At the profit threshold, the strategy closes a configurable fraction of the position.
- With trailing enabled, the take-profit level advances in steps as price rises.
- After the threshold is reached, a stop tracks the high and exits the remainder on a pullback.
- Published BTC perpetual backtest settings are given, but no performance results are reported.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.