SMA-Based Long Entries with Pattern Filters and Trailing Stops

Summary

This document outlines a long-only strategy organized around an 18-day simple moving average. Entry options include trading near or above the average, using price and candle conditions such as inside bars, and selecting which weekdays may be traded. Entries are described as limit orders slightly above a low or, in another mode, stop orders above an order level. Exit choices include a fixed stop around the entry price or a trailing stop based on the lowest price across two days. Many of these conditions are configurable rather than mandatory.

The document provides parameters and published BTC_USDT Binance futures test settings using daily bars from December 2019 to January 2025, but no results or comparison of settings. The source code is more specific and does not clearly match every element of the prose: the weekday inputs are mislabeled relative to the days they control, and the described inside-bar options are not consistently applied in the active entry condition. The notes identify risks from volatile markets, quick reversals, and repeated patterns during consolidation. They propose volatility-based stops, volume filters, and trend-strength checks, but do not test these refinements.

Key ideas

• The strategy uses an 18-day simple moving average as a reference for long entries.
• Entry conditions can involve candle patterns, weekday selection, and limit or stop order placement.
• Exits can use a fixed entry-based stop or a trailing level based on the lows of two days.
• Published BTC_USDT futures test settings cover daily bars from late 2019 to early 2025, without reported results.
• The source's weekday labels and active pattern conditions do not fully align with the prose description.

Tags

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