Short Entries from Squeeze Momentum and Moving Average Crossovers

Summary

This short-term system combines Squeeze Momentum Indicator (SMI) direction with a moving-average crossover to identify short entries. It signals a short when momentum is declining and price crosses below its moving average. The published parameters include a 20-period SMI length, 5-period smoothing, and 14-period moving-average length. The strategy sets a 0.4% profit target and a 2.5% stop loss for short positions.

The document describes a two-indicator confirmation approach and notes that it may produce false signals in ranging markets, perform poorly in sideways conditions, and be sensitive to parameter choices and slippage. Its published backtest settings specify BTC/USDT futures on Binance at a two-hour interval from October to November 2024, but no performance results are provided. There is also a discrepancy: the prose describes a 0.4% target, while one source comment says 0.2%; the code calculation uses 0.4%.

Key ideas

• A short entry requires declining SMI momentum and a price cross below its moving average.
• The exit logic sets a 0.4% profit target and a stop 2.5% above the short entry price.
• The strategy may produce frequent false signals in sideways markets and is exposed to execution slippage.
• The published backtest configuration specifies BTC/USDT futures on a two-hour interval, but reports no performance results.

Tags

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