Single-SMA Position Signals with Optional Take-Profit and Stop-Loss

Summary

This strategy compares a selected trigger price with a simple moving average calculated from a chosen price source and resolution. A trigger above the average sets a long state, while one below it sets a short state; entries occur when that state changes. The default average length is 14, and the default input resolution is daily. Optional exits use take-profit and stop-loss distances, though the document does not specify their units in the prose. The implementation also includes options for reversing signals, coloring bars, displaying the average, and issuing alerts.

The source is a single-average state rule rather than a two-average crossover, despite the accompanying overview describing fast and slow averages. The material warns about false signals during consolidation, sensitivity to parameter choices, lag, and omitted trading costs and slippage. Published settings show a BTC-USDT futures test over December 2023, but no results are reported. Since take-profit and stop-loss are disabled by default, risk controls require explicit activation and appropriate parameter choices.

Key ideas

• The strategy sets a long or short state according to whether a trigger price is above or below a selected simple moving average.
• Trades are opened when the position state changes, with optional signal reversal.
• Take-profit and stop-loss exits are optional and disabled by default.
• Consolidation, parameter sensitivity, lag, and unmodeled trading costs are stated limitations.
• The accompanying description of a fast and slow average does not match the single-average logic in the source.

Tags

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