SMA Crossovers with Fixed Profit Targets on Short Timeframes

Summary

This short-term strategy signals long trades when price crosses above a simple moving average (SMA) and short trades when it crosses below. Its default SMA length is 20, and it closes positions when the bar’s high or low reaches a fixed point target relative to the average entry price. Trading is intended for 1-, 3-, or 5-minute charts; outside those intervals the script closes all positions.

The document describes chart markers and background colors that visualize signals and price relative to the average, but reports no strategy performance results. Its published backtest settings instead specify a 5-hour chart and a date range from January to March 2025, which conflicts with the stated eligible timeframes. The source also includes no explicit stop loss. The document identifies moving-average lag, false signals in sideways markets, and early exits in strong trends as limitations, and suggests testing stop-loss rules, filters, and adaptive targets. The configuration alone does not demonstrate that the strategy is profitable.

Key ideas

• A price crossover of the SMA generates long or short entries.
• Positions exit at fixed point targets measured from the average entry price.
• The strategy is designed for 1-, 3-, and 5-minute charts, while its published backtest settings use a 5-hour chart.
• No stop-loss rule is included, leaving losses open-ended if price moves against a position.

Tags

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