Trend Magic and Moving Average Perfect Order Strategy

Summary

This strategy combines an EMA 45, SMA 90, and SMA 180 alignment with a Trend Magic indicator built from CCI and ATR. A long setup requires bullish moving average order and a change in the indicator to bullish; a short setup uses the reverse conditions. The described risk plan fixes the stop at the SMA 90 value at entry and targets 1.5 times the entry-to-stop risk. The published settings identify a five-minute BTC/USDT futures backtest window, but provide no performance results, so they do not establish profitability.

The notes flag lag, false signals in sideways markets, and sensitivity to parameter choices. The code also makes the stop and target conditional on the signal bar, and calculates risk from the close relative to SMA 90; the description does not discuss cases where that produces an unsuitable stop or risk distance. Treat the method as a testable trend-following rule, not as evidence of dependable returns.

Key ideas

• Bullish setups require EMA 45 above SMA 90 above SMA 180, with the reverse ordering for bearish setups.
• Trend Magic uses CCI direction and an ATR-based level, with a color change serving as the second entry condition.
• The described stop is fixed at SMA 90 at entry, and the target is set to 1.5 times the calculated risk.
• Lag, choppy markets, and parameter sensitivity are stated limitations.
• The supplied backtest settings identify a market and period but include no outcome statistics.

Tags

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