SMA Crossover Entries with ATR-Based Limit Exits

Summary

This strategy enters long when the 14-period simple moving average crosses above the 28-period average, and short on the opposite crossover. It then sets a limit exit using the prior bar's high plus an ATR multiple for a long position, or the prior bar's low minus that amount for a short position. The stated defaults are an ATR length of 7 and a multiplier of 1.5. The document describes this as a dynamic take-profit approach intended to exit after favorable price movement.

The published settings specify a BTC/USDT futures backtest over January 2024, but provide no performance results. The source code makes the exit levels depend on the prior bar's high or low and current ATR; it does not establish that the level trails profits in the usual sense, nor does the text fully explain how limit fills behave when price has already moved beyond the level. The article also notes that ATR expansion, noise, and SMA lag can affect exits and entries. It identifies the absence of a separate stop-loss as a key limitation and suggests adding risk controls and evaluating parameters across markets.

Key ideas

• A 14- and 28-period SMA crossover determines long and short entries.
• The exit limit uses the previous bar's high or low adjusted by an ATR multiple.
• The stated ATR defaults are a length of 7 and a multiplier of 1.5.
• The source does not include a separate stop-loss, and the exit formula may not behave like a conventional trailing stop.
• Backtest settings are given, but the document 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.