Three Moving Average Crossovers for Medium- to Long-Term Trend Signals
Summary
The strategy uses three simple moving averages with fast, medium, and slow settings. It opens a long position when the medium average crosses above the slow average, treating this as the start of an upward trend. It closes the position when the fast average crosses below the medium average. The stated settings are 9, 50, and 100 periods, respectively, and the implementation allocates 30% of equity per position.
The document presents the extra average as a way to filter noise compared with a two-average crossover, but supplies no detailed backtest metrics to substantiate its claims of stronger win rates or historical results. The published test covers a short period on BTC/USDT futures, so it cannot establish performance across markets or regimes. The strategy trades infrequently, may use capital inefficiently, and can suffer large losses when a long-term trend reverses. It also notes that parameters may need adjustment by instrument and suggests volume confirmation and explicit loss limits as possible refinements.
Key ideas
- A medium average crossing above a slow average triggers a long entry.
- A fast average crossing below the medium average closes the long position.
- The example settings are 9, 50, and 100 periods, with 30% of equity allocated per position.
- The document claims extra averages can filter noise but does not provide detailed evidence supporting performance claims.
- Low trade frequency, parameter sensitivity, and potentially large reversal losses are key limitations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.