Multi-Moving-Average Breakout Strategy with Partial Exits

Summary

This EUR/USD strategy is described for a 30-minute chart and aims to participate in both short ranges and larger trends. It opens buy or sell positions when a one-period smoothed moving average crosses the 200-period smoothed average. It then uses crossovers back through averages with periods 5, 25, 50, and 200 to close portions of the position, associating the faster averages with smaller moves and the slower averages with stronger trends. The instructions specify an order size of 0.04 lots and partial closes of 0.01 lots.

The document recommends a historical test window from 2003 to mid-2012 using open prices, but supplies no reported test results. It identifies repeated crossovers in sideways markets as a source of false signals and accumulating losses. Suggested improvements include filtering consolidation and revising the close logic, since the stated partial-close behavior can leave most of an order exposed after a reversal. The strategy’s rules and suggested fixes are descriptive; they do not establish profitability or validate the proposed testing approach.

Key ideas

• A one-period versus 200-period smoothed moving-average crossover triggers long or short entries.
• Partial exits are linked to reversals across moving averages with periods 5, 25, 50, and 200.
• The strategy assigns faster averages to smaller moves and slower averages to larger trends.
• Repeated crossovers during consolidation can generate false signals and repeated small losses.
• The author proposes a consolidation filter and revised order-closing logic, without presenting performance results.

Tags

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