SMA Crossover and Stochastic Entries with Fixed and Breakeven Stops

Summary

This strategy combines a 34-period and a 200-period simple moving average with a 9-3-3 Stochastic filter. It enters long when price crosses above the faster average while that average is above the slower one and %K exceeds 20; short entries reverse the trend and price conditions, with %K below 80. The described trade management sets a stop 2% from entry and a profit target 4% away, moving the stop to entry after a favorable 2% move. Position size is specified as 10% of account equity.

The source specifies a SOL/USDT hourly test spanning about a year, but the supplied text contains no performance statistics, so it does not demonstrate an edge. There is also a notable implementation issue: exit orders are placed only inside the entry-signal branches, and the stop levels depend on the current close and position average, so the code may not maintain the described protective exits continuously. Fixed-percentage stops may not fit changing volatility; lagging averages, slippage, trading costs, and parameter sensitivity are acknowledged limitations.

Key ideas

• Long entries require a price cross above the faster SMA, a bullish SMA relationship, and Stochastic %K above 20; short rules reverse these conditions.
• The stated stop is 2% from entry, the target is 4% away, and a favorable 2% move triggers a breakeven stop.
• The strategy specifies position sizing at 10% of account equity.
• The source places exit orders only within entry-signal branches, which may not implement continuously maintained protection as described.
• The SOL/USDT hourly test setup includes no performance results.

Tags

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