Triple Moving Average Crossover with a Long-Term Trend Filter

Summary

This trend-following method combines a fast and medium moving average for crossover signals with a slower third average as a directional filter. A fast-line cross above the middle line suggests a long entry when price is above the slow line; a cross below suggests a short entry when price is below it. The example parameters are 13, 50, and 200 periods, and the moving average type and price source can be configured. The document presents this as a way to reduce short-term noise while following medium-term trends.

The source describes entries but no explicit stop-loss or take-profit rule. Backtest settings specify BTC/USDT futures over roughly a year, but the document provides no performance statistics, so they do not establish effectiveness. It notes that moving averages lag reversals, while frequent crosses can raise trading costs and slippage. It recommends testing parameters by market, accounting for costs, and considering additional confirmation or risk controls; such tuning can also create overfitting risk.

Key ideas

• Crosses between the fast and medium averages generate directional signals.
• Price relative to the slow average filters entries in the same direction as the broader trend.
• The example uses configurable moving-average types, periods, and price sources.
• Lag, whipsaws, costs, and slippage can undermine the method.
• The stated backtest setup includes no performance results.

Tags

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