Multi-Moving-Average Trend Signals with an Adaptive Stop Line
Summary
This trend-following strategy lets the user select a price input and moving-average calculation, then compares the resulting average with a percentage-based adaptive stop line. The source generates long and short entries when the average crosses that line in opposite directions. The accompanying explanation frames the approach as trading price breaks around a moving average and describes a stop that adjusts with the selected average; the source’s entry logic is specifically based on the average crossing the stop line.
The document lists a default period and stop percentage, along with options for several average types, but supplies no performance results. It warns that crossings can generate repeated trades in sideways markets and that wider stop settings can allow larger losses. Parameters may need separate evaluation across instruments and timeframes; proposed filters and trade limits are suggestions rather than tested improvements.
Key ideas
- The strategy offers several moving-average formulas and lets the user choose the input price series.
- Long and short entries occur when the calculated average crosses its adaptive percentage stop line.
- The stop line follows the average with a configurable percentage offset.
- Sideways markets can produce repeated signals, and parameter suitability may vary by market and timeframe.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.