Triple SMA Alignment with Adaptive and Long-Term Trend Filters

Summary

This long-only strategy combines three simple moving averages with a long-term moving average and a Kaufman-style adaptive average. It enters when the short, medium, and longer short-term averages are ordered bullishly, price is above the long-term average, and the adaptive average is not nearly flat relative to its prior value. It exits when the three short-term averages align bearishly. The published settings use short-term periods of four, nine, and eighteen bars, with a 100-bar main average and a 25-bar adaptive calculation.

The document frames the method as a trend filter intended to avoid some entries in sideways conditions, while noting that signals may be infrequent, lagging, and exposed to drawdowns or conflicting trends. It provides a BTC/USDT futures backtest configuration but no performance results. The source also qualifies the prose: it requires bullish ordering and price above the main average, but does not explicitly require a fresh crossover of each average or a price cross above the main average at entry.

Key ideas

• The strategy enters long when three short-term moving averages are in bullish order and price is above the long-term average.
• A Kaufman-style adaptive average condition filters entries when its value is nearly unchanged from the prior bar.
• Bearish ordering of the three short-term averages triggers a full exit.
• The rules can lag and produce few entries, and they do not include an explicit stop loss.
• The prose describes fresh crossovers, while the source checks moving-average ordering and price position.

Tags

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