Triple Moving Average Trend Filter with Crossover Entries

Summary

This strategy uses three moving averages to define trend and generate trades. Price above or below the 200-period average sets the long or short bias, while a crossover of the 20-period and 50-period averages triggers an entry in that direction. It allows either simple or exponential averages and specifies a 2% stop loss, a 4% take profit, and closing on an opposing crossover.

The document gives the rules and parameter choices, plus a published backtest configuration for BTC/USDT futures over a stated period. It reports no performance results, so it does not establish profitability. The author notes that moving averages lag, crossovers can produce false signals in sideways markets, fixed percentage exits may not fit all conditions, and results may be sensitive to the chosen periods. The suggested additions, such as volume or trend strength filters, are proposals rather than tested improvements.

Key ideas

• The 200-period moving average determines whether the strategy favors long or short trades.
• A 20-period and 50-period crossover triggers entries when it agrees with the 200-period trend filter.
• The rules specify a 2% stop loss, a 4% take profit, and exits on reverse crossovers.
• Moving-average lag and choppy markets can produce delayed or false signals.
• The published backtest settings describe a BTC/USDT futures test but provide no performance results.

Tags

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