Trend Signals from Dual Hull Moving Average Crossovers

Summary

This strategy uses a fast and a slow Hull Moving Average (HMA) to identify possible trend changes. HMA combines weighted moving averages to reduce lag relative to conventional moving averages. The specified defaults are 9 periods for the fast line and 16 for the slow line. A cross of the fast line above the slow line triggers a long entry, while a cross below triggers a short entry.

The document explains the HMA calculation and outlines potential benefits and limits, but gives no performance results or evidence that the method filters noise or improves returns. Its published backtest settings identify BTC/USDT futures and a two-day interval over a stated date range, but no outcomes are reported. The strategy has no stated stop-loss or position-sizing rules. Frequent crosses in sideways markets, residual lag, false signals, and sensitivity to the selected periods are noted; trend filters and explicit risk controls are suggested for further study.

Key ideas

• HMA uses weighted moving averages in a combination intended to reduce lag.
• The strategy enters long when the fast HMA crosses above the slow HMA and short when it crosses below.
• The stated default fast and slow HMA lengths are 9 and 16 periods.
• Sideways conditions can generate repeated signals, while lag and parameter choices remain limitations.

Tags

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