SMA Trend Entries with Price Zones and Trend-Based Exits

Summary

This strategy uses a 74-period simple moving average as the main entry reference and divides the recent high-low range into five price zones. It buys when price crosses above the long average while closing in the upper zone, and sells short when price crosses below it while closing in the lower zone. A hard stop is set using a configurable tick distance. The source also tracks runs of three same-color candles and, while a position is open, can move the stop to the current bar’s low or high and exit when that run ends.

The overview describes a 19-period average and a 60-period stochastic oscillator as trend and momentum components. In the source, these indicators mainly affect plotted line colors; the stochastic is not part of the entry conditions. The published BTC/USDT futures test covers about one month, and no performance statistics are given. The document notes risks from sideways markets, slippage, parameter sensitivity, and full-position sizing, making broader validation and explicit position sizing important before practical use.

Key ideas

• The entry rules use crosses of the 74-period SMA combined with upper or lower zones of the recent price range.
• A configurable hard stop is set from the entry price using tick size and a tick count.
• Runs of three same-direction candles activate a stop that follows the current bar’s extreme and may exit when the run ends.
• The 19-period SMA and stochastic affect chart coloring in the source, but not the entry rules.
• The brief published test contains no results and does not establish performance across market conditions.

Tags

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