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Single-Indicator Trend Following with Selectable Moving Averages

Article Strategy library · Author: ChaoZhang

Summary

This strategy provides a selectable trend-following rule built around a library of moving averages and regression-style indicators. The trader chooses one indicator and a lookback length; the strategy compares its current value with the prior bar. It opens a long position when the selected line rises and closes the position when that line falls. The available choices include standard and adaptive averages, linear regression, and SuperTrend.

The document argues that a broad menu of indicators offers flexibility across markets, but it does not present comparative testing or performance evidence. Its published configuration uses BTC/USDT futures on daily bars over roughly a year. The method is trend dependent and may react late to reversals, miss opportunities, or give poor signals in sudden market shocks. The article recommends parameter tuning and suggests reversal filters or emergency stops, but the supplied strategy itself has no explicit stop-loss rule. The claimed reduction in false signals is not substantiated with results, and performance may vary by indicator, settings, asset, and market regime.

Key ideas

  • The trader selects one trend indicator from a menu of moving averages and related measures.
  • A rising selected indicator triggers a long entry, while a falling indicator triggers an exit.
  • The published example configures the strategy for BTC/USDT futures on daily bars.
  • Indicator lag can delay exits or entries around reversals.
  • The document recommends stop mechanisms and reversal filters, but reports no comparative performance evidence.

Tags

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