TEMA Crossover Trend Following with Recent Swing Levels

Summary

This trend-following approach compares short and long Triple Exponential Moving Averages (TEMA), using a crossover to open a long or short position. The description specifies lengths of 300 and 500 periods and a five-minute operating timeframe. It also describes recent ten-period highs or lows as stop references and says positions are held until an opposing crossover appears. TEMA is presented as a way to respond more quickly than conventional moving averages while filtering some market noise. The material provides no measured backtest performance; it includes only a published test configuration, whose daily period setting does not match the described five-minute timeframe. There is also a mismatch between the stated stop-loss logic and the supplied code: swing levels are calculated and stop prices are assigned, but those prices are not submitted as exit orders. The document identifies range-bound whipsaws, slippage, lag, and parameter sensitivity as risks, and suggests testing market filters, adaptive stops, volume confirmation, and position sizing.

Key ideas

• The strategy opens positions when short and long TEMA lines cross.
• The described defaults use 300- and 500-period TEMA lengths.
• The prose proposes recent ten-period highs or lows as stop references and opposing crossovers as exits.
• The source code does not place the calculated stop prices as exit orders.
• The published backtest settings do not establish performance and differ from the stated timeframe.

Tags

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