Triple Moving Average Crossovers for Trend Following

Summary

This trend-following method calculates short-, medium-, and long-period simple moving averages. Crosses between the short and medium averages generate the main buy and sell signals, while crosses between the short and long averages are presented as faster signals for broader trend changes. The published defaults are 7, 25, and 99 days. In the source, only the short-versus-medium crosses place strategy orders; the short-versus-long signals are plotted but their order calls are commented out.

The document emphasizes the method’s simple rules and adjustable periods, while noting that moving averages lag and can produce false signals or excessive turnover, especially around choppy conditions. It suggests adding volume, price-change, or other indicator filters and considering trading costs. The listed Binance BTC/USDT futures test uses hourly bars over about a month, with a 15-minute base period, but no outcomes are reported. The short/long signals should therefore be understood as visual prompts in the supplied implementation, not active order triggers.

Key ideas

• The main strategy enters long or short when the short moving average crosses the medium moving average.
• Short-versus-long moving average crosses are described as faster signals, but their order calls are disabled in the source.
• The default average periods are 7, 25, and 99 days.
• Moving-average lag and false crosses can lead to late entries, whipsaws, and higher transaction costs.
• The published futures backtest setup has no reported performance results.

Tags

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