Percentage-Based Trailing Buy and Stop Strategy

Summary

This long-only approach pairs a trailing buy threshold with a trailing stop threshold. The buy line is calculated by applying a user-set percentage offset above a moving average of a selected price source over a chosen number of bars. A buy is triggered when the selected buy trigger crosses above that line. The stop line applies a percentage offset below a moving average of its selected source; a position is closed when the stop trigger crosses below it. The supplied defaults are a 1.9% buy offset, a 1.5% stop offset, and six bars, with the trigger sources configurable.

The document presents the method as a basic trend-following framework and recommends tuning parameters across markets and timeframes. It warns that poor settings can cause premature exits or aggressive entries, while sideways markets may produce repeated trades and slippage. The published configuration uses BTC_USDT futures with daily bars across roughly a year, but it provides no measured results. It also does not specify position sizing or broader risk controls, so those would need separate design and evaluation.

Key ideas

• The strategy opens a long position when the chosen buy trigger crosses above a percentage-offset moving average.
• It closes the position when the stop trigger crosses below a separate offset moving average.
• The calculation window and price sources can be adjusted by the user.
• Choppy markets may cause repeated trades and slippage.
• The published backtest settings are not accompanied by performance results.

Tags

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