Three Moving Averages for Trend-Filtered Crossover Entries

Summary

This document describes a trading template built around 60-, 10-, and 5-period moving averages. For a long entry, price and both shorter averages must be above the 60-period average, while the 5-period average crosses above the 10-period average. For a short entry, price and both shorter averages must be below the 60-period average, while the 5-period average crosses below the 10-period average. Positions are closed when price crosses the 5-period average against the open position. The code also plots the averages and routes entries and exits through a task framework.

The idea is to use the longer average as a trend filter and a crossover between shorter averages as a timing signal. The document provides parameter values and implementation code, but no market, timeframe, backtest settings, or performance results. It also gives no explicit stop-loss, take-profit, position-sizing rationale, or analysis of costs and slippage. The template’s trading behavior therefore cannot be judged from the supplied material alone; its rules and implementation details would need validation before use.

Key ideas

• The template uses 60-, 10-, and 5-period moving averages.
• A long setup requires price and both shorter averages to be above the longest average.
• A short setup requires price and both shorter averages to be below the longest average.
• The shorter averages’ crossover supplies the entry timing signal.
• An open position is closed when price moves across the 5-period average against it, but no performance evidence is provided.

Tags

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