Plotting Fee-Adjusted Breakeven Levels After SMA Entries

Summary

This document explains a simple position-visualization technique built around moving-average crossovers. A fast simple moving average crossing above a slower one triggers a long entry; a downward cross triggers a short entry. At entry, the script records the entry price and calculates a fee-adjusted breakeven level: above entry for a long and below entry for a short. It plots both levels and shades the area between them so the trader can see the price required to cover the configured fee assumption.

The illustration can support manual position monitoring, but it is not a complete exit strategy. The document explicitly notes that the example lacks automated exits and a stop loss, and its calculation omits slippage. Its claim that crossing the entry-price line implies profit also needs care: fees and execution costs mean the fee-adjusted level is the relevant threshold, and actual results depend on the cost assumptions. The example reports backtest settings but no performance evidence. It is best understood as a charting aid that can be combined with separately defined risk and exit rules.

Key ideas

• A fast and slow SMA crossover supplies the example’s long and short entries.
• The script plots entry and fee-adjusted breakeven levels for each direction.
• The fee assumption directly affects the calculated breakeven price.
• The example does not define an automated exit or stop-loss rule.
• Slippage and inaccurate fee inputs can make the displayed threshold misleading.

Tags

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