Persistent Weighted-Moving-Average Momentum Long Strategy
Summary
This trend-following strategy aims to stay long during sustained price advances. It enters after a weighted moving average has risen for five consecutive days and exits after it has fallen for four consecutive days. The document says that counting consecutive moves is intended to filter short pullbacks and keep the position through an ongoing uptrend. It also describes a maximum-loss setting as a way to limit risk.
The notes identify potential benefits and drawbacks but provide no performance results or comparison with another approach. Persistent rises may capture continuing momentum, yet a deep correction can cause substantial losses, and a wide stop may not contain them effectively. The supplied settings name a risk input, while the source shown does not activate its intraday-loss control; the described stop-loss protection therefore is not demonstrated as implemented. The examples use BTC/USDT futures data over a stated 2023 period, which is not evidence of future performance or suitability across markets.
Key ideas
- The strategy enters long after its weighted average rises for five consecutive days.
- It exits after the weighted average falls for four consecutive days.
- Consecutive-day conditions aim to distinguish persistent momentum from short-lived fluctuations.
- A deep pullback can still cause substantial losses, especially if the stop is too wide.
- The published settings and source do not demonstrate an active maximum-loss control.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.