Triple Moving Average Alignment for Trend Following

Summary

This strategy uses three moving averages with fast, medium, and slow periods to identify directional trends. It enters long when the averages align from fastest to slowest and short when they align in the reverse direction. The published defaults use periods of 9, 21, and 50, with EMA or SMA selectable and separate price sources available for each line.

Positions may close when the alignment breaks, or through optional fixed take-profit and stop-loss levels; the settings show 12% and 1% as defaults. The document describes the method and provides settings plus a sample backtest configuration for BTC_USDT futures, but reports no performance results. It cautions that moving-average signals can mislead in less directional conditions and suggests tuning periods or adding trend filters. The sample configuration covers a short historical interval, so it does not establish broader robustness.

Key ideas

• A long signal occurs when the fast moving average is above the medium line, which is above the slow line.
• A short signal occurs when the lines align in the opposite order.
• The strategy can exit when alignment reverses or when optional fixed profit and loss levels are reached.
• EMA or SMA calculations and periods can be configured.
• The document warns that false signals may cause losses, especially when trends are unclear.

Tags

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