SMA Pullback Entries Within Long-Term Uptrends

Summary

This strategy uses simple moving averages to seek pullback entries during an established uptrend. It treats the 20-day SMA above the 60-day SMA as an uptrend filter, then enters long when the 5-day SMA crosses back above the 20-day SMA. An exit is signaled when the 20-day SMA crosses above the 5-day SMA. The description also mentions 10-day and 120-day averages, though they do not drive the coded entry or exit rules.

The document explains that moving averages are easy to implement and can reduce sensitivity to short-term price changes, while acknowledging their lag and vulnerability to whipsaws in sideways markets. It provides parameters and a daily BTC/USDT futures backtest period, but reports no performance results. The source code sets the date-window condition to always true, so its date filter does not actually restrict trades. It also lacks volatility filtering, volume confirmation, and explicit stop-loss rules; the proposed enhancements are suggestions rather than tested improvements.

Key ideas

• The strategy uses the 20-day SMA above the 60-day SMA to define its long-term bullish regime.
• A long entry occurs when the 5-day SMA crosses above the 20-day SMA during that regime.
• The position closes when the 20-day SMA crosses above the 5-day SMA.
• Moving-average lag and sideways-market crossovers can produce late or false signals.
• The published settings include a daily BTC/USDT futures backtest, but no performance results.

Tags

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