Trend Following with Hull Moving Average and LSMA Crossovers

Summary

This trend-following method combines a Hull moving average with a least-squares moving average (LSMA). It describes taking a long position when the Hull measures indicate an uptrend and LSMA crosses above the Hull midline, and taking a short position under the corresponding downtrend and downward-cross conditions. Stops are placed near the latest swing low for longs or swing high for shorts. The document discusses Hull and LSMA settings and presents a short BTC futures backtest configuration, but reports no performance results.

The proposed rationale is that the Hull measure responds to trend changes while the LSMA crossing helps confirm direction. The document warns that repeated crosses in ranging markets can cause overtrading, swing-point stops can be hit by short-term moves, and indicator lag can lead to misjudged signals. It suggests tuning parameters by market and timeframe and exploring volatility or volume filters. Although the prose discusses trend confirmation, the included code and settings should be checked before assuming every described filter or stop rule is implemented as stated.

Key ideas

• The strategy combines Hull trend direction with LSMA crossovers to define long and short entries.
• Long and short stops are described at recent swing lows and highs, respectively.
• Frequent indicator crossings in ranging markets may lead to excessive trading.
• The supplied backtest configuration reports no results, so effectiveness is not established.

Tags

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