Trend Following with a Multi Moving Average Rating

Summary

This strategy combines readings from multiple moving average types and periods into a single directional score. Each available average earns a positive point when below the close or a negative point when above it; the points are averaged, and configurable thresholds trigger long or short entries. The intent is to reduce dependence on any one moving average and assess trend from several perspectives.

The document describes configurable timeframes and entry thresholds, but provides no performance results. Its published example settings use BTC/USDT futures over a short one-minute backtest window, which is insufficient evidence for broad conclusions. The method can produce false signals in choppy markets, and the averages may provide overlapping rather than independent information. The text recommends tuning parameters by instrument and periodically reassessing them as market conditions change; it also suggests adding volatility or volume measures, or exploring automated parameter selection.

Key ideas

• The strategy scores each moving average according to whether it lies above or below the closing price.
• It averages available scores and compares the result with configurable long and short entry thresholds.
• Using several average types and periods is intended to provide multiple views of price direction.
• The document reports no performance results and flags choppy markets and parameter drift as limitations.

Tags

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