SMA Rebound Entries with Dynamic Sizing and Trailing Stops

Summary

This strategy uses the 50-day and 200-day simple moving averages to filter rebound entries. A long entry occurs when price crosses above the 50-day average while it is above the 200-day average; a short entry uses the reverse conditions. Trades are limited to specified New York or London sessions and to dates from the start of 2024. The source sets size at two lots until equity gains exceed 4,000, then raises it to three lots. Initial stops use the entry candle’s low or high, with stop adjustments at stated floating-profit thresholds. Profit targets are set at 2.5 times the current risk.

The document describes a one-hour SOL/USDT backtest configuration spanning about a year, but supplies no performance statistics. It warns that moving averages lag, ranging markets can produce false breaks, and increased size may amplify losses during reversals. The prose mentions a 1:2.5 risk-reward ratio, while the strategy name and comments cite other ratios; the code’s stop and target mechanics also make realized risk dependent on the evolving stop. Results therefore cannot be inferred from the setup alone.

Key ideas

• Long and short entries require price to cross the 50-period SMA in the direction of the 50/200 SMA trend filter.
• The source restricts entries to defined New York and London sessions and dates from 2024 onward.
• Position size rises from two lots to three after equity gains exceed the specified threshold.
• Stops begin at the entry candle extreme and adjust at profit thresholds, with targets set at 2.5 times current risk.
• The document provides a one-hour SOL/USDT backtest setup 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.