Sequential Moving Average Crossovers with Staged Entries and Volatility Filtering

Summary

This strategy tracks a sequence of crosses by a fast moving average against three slower averages. After the fast average crosses the middle average and then the longer average, it permits an initial position; crossing the longest average completes the sequence and can add to the position. The source implements corresponding downside sequences for short trades. Users can select the moving-average type and price source, and a sequence resets if its stages take too long or the crosses reverse.

A Bollinger Band width floor filters out periods of especially low volatility. Positions close when price reaches the middle average, followed by a cooldown period that limits immediate re-entry. The document provides settings and backtest metadata for ETH/USDT futures, but no outcome statistics or comparison against a baseline. Its claims that the filter improves signal quality are not supported by reported evidence. The rules also rely on exact crossover ordering and configurable thresholds, so their behavior may vary with market, timeframe, execution assumptions, and parameter choices.

Key ideas

• The entry sequence requires the fast moving average to cross the intermediate averages in order.
• The strategy allows an earlier position after two stages and an add-on after the final crossover.
• The source includes a mirrored sequence for short entries.
• A Bollinger Band width floor filters out periods with very low volatility.
• Price reaching the middle moving average closes a position, and a cooldown delays re-entry.
• The published ETH/USDT backtest settings include no results to establish the strategy’s effectiveness.

Tags

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