SMA Pullback Entries with ATR-Based Stops and Targets

Summary

This crypto strategy uses two simple moving averages to define the prevailing direction and price relative to the faster average to time pullback entries. It buys when price is below the fast average while that average is above the slow average, and sells short under the inverse conditions. Exits use an ATR-based stop and profit target around the average entry price, with separate multiples for each direction.

The document describes the approach as trend confirmation paired with a pullback entry, and notes risks from lagging averages, ranging markets, parameter sensitivity, and full-equity position sizing. Published settings specify a BNB/USDT futures test on three-day bars, but no performance results are included. Although the exits adapt to ATR, the code recalculates levels using the current ATR, so the levels may change after entry; the described risk-reward ratio is therefore not necessarily fixed. The test settings alone do not establish effectiveness, and costs, sizing, and validation across market regimes remain unaddressed.

Key ideas

• The strategy enters long when price is below the fast SMA while the fast SMA is above the slow SMA, and enters short under the reverse conditions.
• ATR multiples set stop and target levels around the average entry price for each position direction.
• The described configuration uses full account equity, which can create substantial exposure.
• The published BNB/USDT futures settings provide no performance statistics, and changing ATR values can alter exit levels after entry.

Tags

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