Multi-Layer SMA Trend Filters with Price-Cross Entries

Summary

This strategy combines a hierarchy of moving averages with price-cross signals to follow established trends. It identifies an uptrend when the 50-period average is above the 100-period average, which is above the 200-period average; it applies the inverse ordering for downtrends. A move across the 50-period average triggers an entry in the matching direction, while a cross of the 20-period average is used to exit. The description also outlines a tick-sensitive cross option intended to time signals more precisely.

The published configuration is for ETH/USDT on Binance at an hourly interval over a limited historical window. No performance statistics or comparison are provided, so the claimed improvements in timing and filtering are not demonstrated by the supplied evidence. The document itself notes that moving averages lag, ranging markets can produce false signals, and rapid price changes may generate excessive tick-based signals. Its fixed exit rule may also be poorly suited to sharp volatility.

Key ideas

• The 50-, 100-, and 200-period SMA ordering acts as a directional trend filter.
• Price crossing the 50-period SMA supplies entries, while the 20-period SMA crossing supplies exits.
• Tick-sensitive cross detection is offered as an alternative to a moving-average crossover signal.
• The document warns that lag and choppy markets can cause missed turns or repeated false signals.

Tags

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