SMA Crossover Trend Strategy with ATR-Based Position Sizing

Summary

This cryptocurrency-oriented trend strategy calculates fast, medium, and slow simple moving averages, with stated default lengths of 7, 30, and 50. Its actual entry and exit rules use the fast and medium averages: crossing upward opens a long position, and crossing downward closes it. The slow average is calculated and plotted but is not part of those trading conditions. A selectable price source and option to use incomplete bars affect the inputs; the document also describes flat or linear-regression forecasting, though the supplied logic does not apply its forecasting function to the moving averages.

Position size is calculated from configured trading capital and risk percentage, divided by a stop distance based on twice the 14-period ATR. A BTC/USDT futures backtest period is specified, but no performance results are provided. The document cautions that moving averages lag, technical signals omit fundamental and event risks, and crossovers can misfire. Its account-based sizing and stop-distance description should be validated against actual order handling and instrument constraints before use.

Key ideas

• The strategy enters long when the fast SMA crosses above the medium SMA and exits when it crosses below.
• A slow SMA is calculated and displayed but does not appear in the stated entry or exit rules.
• Position size is based on a risk allocation divided by a stop distance set to twice the 14-period ATR.
• The input options include price source, incomplete-bar handling, and a forecast method, though the shown forecast function is not used in the trading logic.
• No backtest performance results are reported, and lagging signals and unmodeled events remain limitations.

Tags

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