SMA-Triggered Grid Entries with Geometric Position Scaling

Summary

This strategy uses a simple moving average crossover to start a directional grid. On a bullish crossover it places up to ten stop entries at successively higher percentage levels; on a bearish crossunder it places corresponding entries below the trigger price. The grid spacing is configurable, and the cash allocated to each successive level is multiplied by a configurable factor, producing geometrically increasing exposure. The script also sets stop-loss and take-profit levels beyond the outer grid and provides date-range, commission, and slippage settings for chart-based backtesting.

The source describes configurable mechanics rather than presenting measured results or evidence that the approach is profitable. Its risk depends heavily on trend persistence, grid spacing, scaling, and execution assumptions; repeated fills can build substantial exposure, and a move against the grid can lead to large losses. The document does not provide a performance report, asset or timeframe recommendation, or robustness analysis, so its sample settings should not be treated as validated parameters.

Key ideas

• A moving-average crossover or crossunder triggers a directional grid anchored to the closing price.
• Grid levels are spaced by repeated percentage changes above or below the trigger price.
• Cash allocation grows geometrically across up to ten grid levels using a configurable multiplier.
• The script calculates outer stop-loss and take-profit levels and includes backtest cost and date settings.
• The document provides strategy mechanics but no performance evidence or robustness analysis.

Tags

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