Triple SMA Crossovers with a 100-Period Trend Filter

Summary

This trend-following system uses 21-, 50-, and 100-period simple moving averages. On the stated primary five-minute timeframe, a long signal occurs when the fast average crosses above the middle average while both are above the 100-period filter. A short or exit signal uses the reverse crossover with both averages below the filter. The description also recommends checking the 30-minute chart for trend confirmation.

The document proposes a 1:2 risk-reward setting and placing a stop below a recent significant low, but supplies no performance results. It warns that moving-average lag can delay trades and that sideways markets may generate repeated signals; sharp reversals can also cause losses. The accompanying backtest settings specify ETH-USDT on Binance over a limited 2024 period at a one-hour chart interval, which differs from the described five-minute approach. Parameter tuning, broader testing, and any claimed reduction in false signals are not substantiated with reported metrics.

Key ideas

• A long signal requires the 21-period SMA to cross above the 50-period SMA while both remain above the 100-period SMA.
• The reverse crossover below the 100-period SMA signals a short or exit condition.
• The strategy is described for five-minute charts, with higher-timeframe confirmation suggested.
• Moving-average lag and ranging markets can produce delayed or repeated signals.
• The published backtest configuration uses a different chart interval and gives no performance metrics.

Tags

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