SMA Crossover Trend Strategy with Configurable Timeframe

Summary

This document explains a long-only trend-following strategy built around two simple moving averages. It enters when a shorter SMA crosses above a longer SMA and closes the position when the shorter average crosses below. The published inputs set the short and long lengths to 50 and 200, with a selectable SMA timeframe; the accompanying settings describe a BTC/USDT futures backtest spanning June 2023 to June 2024.

The notes identify potential strengths and limitations: the crossover is straightforward and adjustable, but moving averages lag, parameters can be sensitive, and sideways markets can produce repeated signals and fees. The source also exposes a date range, although the entry and close logic is not restricted by that range; only the plotted signal markers use it. No backtest performance results are reported, and the published configuration specifies zero commission, so it offers no evidence of profitability or realistic trading costs.

Key ideas

• A long position opens when the short SMA crosses above the long SMA and closes on a downward cross.
• The published defaults use 50- and 200-period averages and allow the calculation timeframe to be changed.
• Moving-average lag can delay entries and exits, while sideways conditions can trigger repeated trades.
• The date inputs constrain plotted markers in the source but do not gate its order logic.
• The published backtest settings report no performance results and set commission to zero.

Tags

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