Multi-Period SMA and EMA Alignment for Trend Following

Summary

This trend-following method combines three short-period simple moving averages (SMAs) with three longer-period exponential moving averages (EMAs). It enters long when the SMAs are stacked from shortest to longest and all sit above the EMAs, whose own ordering also slopes upward. The short condition reverses both orderings. The stated periods are 5, 13, and 21 for the SMAs, and 75, 90, and 200 for the EMAs. The source also specifies profit and loss exit distances, though it does not explain their units.

The document explains the rationale as using quicker averages to track near-term direction and slower averages to frame the broader trend. It supplies a short BTC/USDT futures backtest period but no performance results, so the claimed noise reduction and practical value are not demonstrated. Risks include lag, conflicting signals, and poor fit during sharp moves. The method uses fixed parameters and gives no detailed position-sizing or market-regime rules; proposed volume filters and parameter tests remain unverified suggestions.

Key ideas

• Long entries require the short SMAs to be stacked upward and above an upward-ordered EMA group.
• Short entries require the opposite ordering across both the SMA and EMA groups.
• The specified averages use periods 5, 13, and 21 for SMAs and 75, 90, and 200 for EMAs.
• The source includes profit and loss exits but does not state their units.
• A short backtest setup is provided without performance results, and moving-average lag remains a key limitation.

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