Three Moving Average Trend Entries with Matched Stop and Target
Summary
The document outlines a configurable strategy that uses three moving averages to identify trending conditions and time entries. For buys, the shorter average must be above the two longer averages, and a candle must cross above the shortest average. The sell rules use corresponding inputs, though their exact conditions are not specified.
The strategy includes a stop loss measured in pips and a percentage target set equal to the stop, along with a choice of moving average type, such as simple or exponential. The document gives no backtest results, market or timeframe guidance, or detail on how crossings are defined. It therefore describes entry and risk parameters but provides no evidence of profitability or broader validation.
Key ideas
- The buy setup requires the 5-period average to exceed the 20-period average, which must exceed the 30-period average.
- A buy entry is triggered when a candle crosses above the shortest moving average.
- Sell conditions are said to use parallel inputs, but the exact rules are not given.
- The stop is specified in pips, and the percentage target is set equal to the stop.
- Users can choose among moving average types, including simple and exponential.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.