Three-Moving-Average Crossovers with Loss-Based Position Reduction

Summary

This expert advisor uses three moving averages to define entry conditions. A buy opens when the fast average crosses above the middle average while both remain below the slow average. The sell condition reverses the crossover direction and requires the fast and middle averages to be above the slow average. The system can use a fixed position size or size positions in proportion to free margin, and it supports take-profit, stop-loss, and trailing-stop settings.

A further sizing feature reduces the lot size after consecutive losing trades, with the document describing smaller sizes as the losing streak grows. Indicator checks occur when a new bar opens, and the note advises against moving-average shifts below one. The text refers to a strategy tester visualization but provides no numerical results, test period, market, or benchmark. It does not establish that the crossover logic is profitable, nor does it explain how the sizing adjustment affects drawdowns or recovery. Costs, slippage, parameter sensitivity, and out-of-sample behavior are not discussed.

Key ideas

• The buy setup requires an upward fast-to-middle moving-average cross while both averages are below the slow average.
• The sell setup mirrors the buy condition with a downward cross while the fast and middle averages are above the slow average.
• Position size may be fixed or based on free margin, and losing streaks can trigger smaller lots.
• The system supports stop loss, take profit, and trailing stop controls.
• The text gives no numerical test results or evidence that the rules are profitable.

Tags

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