Two Moving Average Crossovers with an Exponential Trailing Stop

Summary

This document describes an expert trading system that uses crossovers between fast and slow linear moving averages for signals, with an exponential moving average serving as a trailing stop. The stated crossover periods are 12 and 25. The system is presented as configurable across symbols and time frames, with a suggestion to use intervals above four hours.

The author reports optimizing on EURAUD at an eight-hour interval and lists several other currency pairs and silver with suggested time frames. The stated test window runs from January 2011 to May 2014, and the leverage used was 1:100. No performance statistics, benchmark comparison, drawdown, or robustness analysis are included, and the screenshots mentioned are not present in the supplied text. The listed settings are therefore examples from a limited historical test, not evidence that the system will perform similarly on other instruments or in later market conditions. The document recommends further testing and parameter tuning by market.

Key ideas

• The entry signal comes from a crossover of fast and slow linear moving averages.
• An exponential moving average is used as a trailing stop.
• The stated linear moving average periods are 12 and 25.
• The document gives example markets and time frames based on a historical optimization.
• It provides no performance statistics or evidence of out-of-sample robustness.

Tags

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