SMA Offset Entries with a Trailing Stop for Long Trades

Summary

This long-only strategy combines fast, slow, and reference simple moving averages with configurable price offsets. It seeks an entry when price is below the reference average, sufficiently distant from the slow average, the fast average is rising, and the slow average is falling. It exits after price moves above the reference and offset thresholds, rises for three candles, the trade is profitable, and the fast average is above the slow one; a trailing stop is intended to protect gains. Position size is calculated as a share of equity.

The document lists default periods, offsets, stake, and trailing-stop settings, plus a BTC/USDT futures backtest configuration covering roughly one year. It gives no performance statistics, so the settings do not demonstrate an edge. The source also computes both offset distances with the same formula and differs from the prose in some entry and exit details. SMA lag, offset sensitivity, and volatility can affect outcomes, so the described rules and implementation need careful validation before use.

Key ideas

• The strategy uses fast, slow, and reference SMAs to define offset-based conditions for long entries and exits.
• A trailing stop is intended to protect an open long, while order size is tied to account equity.
• The source computes the high and low distance measures identically, which may not match the intended offset logic.
• The published backtest settings include no performance results, and moving-average lag and parameter sensitivity remain key limitations.

Tags

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