Three Moving Average Crossovers with a Trend Filter and Fixed Exits

Summary

This strategy uses three simple moving averages to generate directional trades: a crossover between short and long averages supplies the signal, while a third average filters trades according to the broader trend. It includes percentage based stop-loss and take-profit inputs and plots the averages and entry markers. The description gives example periods and a BTC_USDT futures backtest configuration, but the source's parameter defaults differ from the periods in the prose.

There are also important implementation inconsistencies. The prose says a short average crossing above a long average triggers a long, but the source checks the long average crossing above the short average; the short condition is similarly reversed. The source's stop and target prices are recalculated from the current close rather than clearly anchored to entry price. Although the document claims favorable backtest and demo behavior, it supplies no performance data to assess that claim. It warns about whipsaws, trend reversals, parameter choice, and transaction costs.

Key ideas

• The strategy combines a short-long moving average crossover with a third moving average trend filter.
• It includes percentage based stop-loss and take-profit settings for long and short positions.
• The prose and source disagree about which average crosses which to trigger entries.
• The source calculates exit levels from the current close, so the documented entry-price interpretation is not clearly reflected in the code.
• The document gives no performance statistics to support its qualitative claim about backtest results.

Tags

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