Triple SMA and StochClose Trend-Following Strategy

Summary

This strategy uses three long-period moving averages to define trend direction, then combines that filter with a smoothed StochClose oscillator for entries. Its stated defaults are 200, 400, and 600 periods for the averages and oscillator thresholds of 5 and 95. It exits when price moves beyond all three averages, sets three profit targets, and allows adding to positions up to a stated limit.

The document explains the intended benefits of trend filtering and scaling into trends, while warning that false signals can occur in sideways markets and near support or resistance. It gives a one-month BTC/USDT futures backtest configuration, but no performance results, so it does not establish profitability. There is also a mismatch between the prose and source: the source uses smoothed moving averages, checks the slowest average for entries, and its long and short oscillator crossings differ from the prose description. These details should be checked before implementing the strategy.

Key ideas

• Three long-period averages are used to frame the market direction.
• The strategy combines a moving-average condition with StochClose threshold crossings for entries.
• It uses staged profit exits and permits adding to positions.
• Sideways markets and false indicator signals are identified as key risks.
• The source logic differs from parts of the written strategy description.

Tags

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