SMA Crossover Entries with ATR-Based Stops and Targets
Summary
This strategy uses a short and long simple moving average crossover to enter positions: the 14-period average crossing above the 28-period average signals a long, and crossing below signals a short. A 14-period ATR sets distances for a stop loss, take profit, and trailing stop. The described multipliers are 1.5 for the stop, 3.0 for the target, and 1.0 for the trailing distance; an optional close signal occurs when price crosses a 10-period SMA. Alerts can carry the entry and risk parameters for automated execution.
The document gives BTC-USDT futures backtest settings on a three-day timeframe, but reports no returns or other performance evidence. It also contains inconsistencies: the overview cites a daily profit target without supporting results, and the source does not implement the ATR exits as strategy orders, despite describing them as automatic exits. It warns that crossovers can whipsaw in ranging markets, parameters are sensitive, reversals can cause lag, and execution can slip. Position sizing is described inconsistently and should not be assumed to be dynamically controlled by the shown logic.
Key ideas
- A 14-period and 28-period SMA crossover determines long and short entries.
- ATR scales the proposed stop loss, take profit, and trailing stop distances.
- An optional price cross of the 10-period SMA acts as an additional close signal.
- The source provides backtest settings but no performance results, and its code does not implement the described ATR exits as strategy orders.
- Ranging markets, parameter sensitivity, reversal lag, position sizing, and slippage are identified as risks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.