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Smart MA Crossover Backtester
Smart MA Crossover Backtester - Strategy Overview
Strategy Name: Smart MA Crossover Backtester
Published on: TradingView
Applicable Markets: Works well on crypto (tested profitably on ETH)
Strategy Concept
The Smart MA Crossover Backtester is an improved Moving Average (MA) crossover strategy that incorporates a trend filter and an ATR-based stop loss & take profit mechanism for better risk management. It aims to capture trends efficiently while reducing false signals by only trading in the direction of the long-term trend.
Core Components & Logic
Moving Averages (MA) for Entry Signals
Fast Moving Average (9-period SMA)
Slow Moving Average (21-period SMA)
A trade signal is generated when the fast MA crosses the slow MA.
Trend Filter (200-period SMA)
Only enters long positions if price is above the 200-period SMA (bullish trend).
Only enters short positions if price is below the 200-period SMA (bearish trend).
This helps in avoiding counter-trend trades, reducing whipsaws.
ATR-Based Stop Loss & Take Profit
Uses the Average True Range (ATR) with a multiplier of 2 to calculate stop loss.
Risk-Reward Ratio = 1:2 (Take profit is set at 2x ATR).
This ensures dynamic stop loss and take profit levels based on market volatility.
Trading Rules
✅ Long Entry (Buy Signal):
Fast MA (9) crosses above Slow MA (21)
Price is above the 200 MA (bullish trend filter active)
Stop Loss: Below entry price by 2× ATR
Take Profit: Above entry price by 4× ATR
✅ Short Entry (Sell Signal):
Fast MA (9) crosses below Slow MA (21)
Price is below the 200 MA (bearish trend filter active)
Stop Loss: Above entry price by 2× ATR
Take Profit: Below entry price by 4× ATR
Why This Strategy Works Well for Crypto (ETH)?
🔹 Crypto markets are highly volatile – ATR-based stop loss adapts dynamically to market conditions.
🔹 Long-term trend filter (200 MA) ensures trading in the dominant direction, reducing false signals.
🔹 Risk-reward ratio of 1:2 allows for profitable trades even with a lower win rate.
This strategy has been tested on Ethereum (ETH) and has shown profitable performance, making it a strong choice for crypto traders looking for trend-following setups with solid risk management. 🚀
Strategy Name: Smart MA Crossover Backtester
Published on: TradingView
Applicable Markets: Works well on crypto (tested profitably on ETH)
Strategy Concept
The Smart MA Crossover Backtester is an improved Moving Average (MA) crossover strategy that incorporates a trend filter and an ATR-based stop loss & take profit mechanism for better risk management. It aims to capture trends efficiently while reducing false signals by only trading in the direction of the long-term trend.
Core Components & Logic
Moving Averages (MA) for Entry Signals
Fast Moving Average (9-period SMA)
Slow Moving Average (21-period SMA)
A trade signal is generated when the fast MA crosses the slow MA.
Trend Filter (200-period SMA)
Only enters long positions if price is above the 200-period SMA (bullish trend).
Only enters short positions if price is below the 200-period SMA (bearish trend).
This helps in avoiding counter-trend trades, reducing whipsaws.
ATR-Based Stop Loss & Take Profit
Uses the Average True Range (ATR) with a multiplier of 2 to calculate stop loss.
Risk-Reward Ratio = 1:2 (Take profit is set at 2x ATR).
This ensures dynamic stop loss and take profit levels based on market volatility.
Trading Rules
✅ Long Entry (Buy Signal):
Fast MA (9) crosses above Slow MA (21)
Price is above the 200 MA (bullish trend filter active)
Stop Loss: Below entry price by 2× ATR
Take Profit: Above entry price by 4× ATR
✅ Short Entry (Sell Signal):
Fast MA (9) crosses below Slow MA (21)
Price is below the 200 MA (bearish trend filter active)
Stop Loss: Above entry price by 2× ATR
Take Profit: Below entry price by 4× ATR
Why This Strategy Works Well for Crypto (ETH)?
🔹 Crypto markets are highly volatile – ATR-based stop loss adapts dynamically to market conditions.
🔹 Long-term trend filter (200 MA) ensures trading in the dominant direction, reducing false signals.
🔹 Risk-reward ratio of 1:2 allows for profitable trades even with a lower win rate.
This strategy has been tested on Ethereum (ETH) and has shown profitable performance, making it a strong choice for crypto traders looking for trend-following setups with solid risk management. 🚀
Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el creador de este script lo ha publicado en código abierto, permitiendo que otros traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la publicación de este código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.
Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el creador de este script lo ha publicado en código abierto, permitiendo que otros traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la publicación de este código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.