Multi-Timeframe Moving Averages and Donchian Breakouts

Summary

This trend-following approach combines four simple moving averages, with periods of 21, 50, 100, and 200, and Donchian-style price breakouts. The source enters long when price closes above the prior 20-day or 55-day high and short when it closes below the corresponding low. The accompanying discussion also describes moving-average crosses as trend signals, but those crossover rules are not present in the supplied source code. The script plots the averages and sets position size as a percentage of equity.

The strategy is presented as most suitable for clearly trending markets. Its stated limitations include false breakouts and poor behavior in sideways conditions; suggested filters include volume and volatility measures. The document provides no reported returns, trade statistics, or test conclusions. Published settings identify BTC/USDT futures on a daily chart over about a year, so they do not establish how the method performs in other instruments or market regimes. Parameter optimization and added filters are proposed ideas, not validated results.

Key ideas

• The source uses prior 20-period and 55-period highs and lows to trigger breakout entries.
• The strategy also plots simple moving averages with periods of 21, 50, 100, and 200.
• The accompanying text discusses moving-average crosses, but the included source does not implement them.
• The method is intended for trending markets and may produce false signals in ranging conditions.
• No performance statistics are provided for the published BTC/USDT futures test settings.

Tags

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