SMMA Crossover Trading with ATR Stops and Fixed Targets

Summary

This document describes a two-way trend-following strategy using price crossovers with a 17-period smoothed moving average (SMMA). A move above the average opens a long position, and a move below it opens a short position. The strategy uses an ATR-based stop placed 0.75 ATR from the SMMA, fixed take-profit distances of 1150 points for longs and 1500 points for shorts, and exits on an opposing crossover.

The document gives illustrative rules and published backtest settings for BTC/USDT futures on Binance, using four-hour bars from February 20, 2024, through February 17, 2025. It does not report performance results, so the claims about reliability and effectiveness are not supported with outcome statistics. The stated risks include whipsaws in sideways markets, slippage at fixed targets, delayed protection during abrupt reversals, and sensitivity to parameter choices. The point-based targets may also need adaptation across instruments and price scales.

Key ideas

• Price crossing above or below a 17-period SMMA determines long or short entry direction.
• The stop is placed 0.75 ATR from the SMMA, while take-profit distances are fixed at 1150 points for longs and 1500 points for shorts.
• An opposing price crossover can close an open position.
• The document warns that sideways conditions can cause frequent trades and that performance depends on parameter choices.
• The published BTC/USDT futures backtest settings contain no reported performance statistics.

Tags

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