SMEMA Crossover Trend Strategy with ATR Exits and Optional Filters
Summary
This strategy enters long or short when a fast double-smoothed moving average crosses a slower one. Optional filters use ADX for trend strength, RSI for directional momentum, an ATR-to-average-ATR ratio for volatility, and price relative to a baseline average. The filters are disabled by default, so the basic configuration relies chiefly on crossovers and confirmed bars.
Risk management sets an ATR-based initial stop and two profit levels, takes a partial position at the first target, and may move the remainder's stop to breakeven or trail it. Opposite crossovers and a maximum holding period can also close trades. The script includes adjustable direction, date limits, alerts, and a dashboard. Its settings describe one backtest configuration, including commissions and slippage, but the supplied material gives no performance results, market-by-market evaluation, or robustness analysis; these parameters should not be read as evidence that the strategy is profitable.
Key ideas
- Entries are triggered by confirmed crossovers between fast and slow double-smoothed moving averages.
- ADX, RSI, ATR ratio, and price relative to a baseline are optional entry filters.
- Initial stops and profit targets are scaled to ATR, with partial profit-taking and optional trailing protection.
- Opposite crossovers and a maximum trade duration provide additional exit conditions.
- The document describes configurable mechanics but supplies no results establishing profitability or robustness.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.