This strategy is based on the 30-day and 200-day moving average crossover on the XAUUSD gold 1-minute timeframe. A buy signal is generated when the short-term moving average crosses above the long-term moving average from the bottom up. A sell signal is generated when the short-term moving average crosses below the long-term moving average from the top down.
The strategy also sets a 40,000-point stop loss and take profit to control the risk and reward of individual trades. When a reverse signal appears, it will close out existing positions and open positions in the opposite direction. This helps effectively control losses and capture profits from trend reversions.
The strategy uses the crossover of the 30-day and 200-day moving averages to determine the trend direction. When the short-term moving average crosses above the long-term moving average, it indicates a bull market, go long. When the short-term moving average crosses below the long-term moving average, it indicates a bear market, go short.
At the same time, set a 40,000-point stop loss and take profit to control the risk of individual trades. In addition, when a reverse signal appears, actively close out the original position and open a new one in the opposite direction to capture potential trend reversal opportunities.
The advantages of this strategy include:
There are also some risks in this strategy:
Methods like optimizing moving average cycle parameters, setting stop loss range, judging reliability of reversal signals can be used to control and reduce risks.
The strategy can be optimized in the following aspects:
The overall effect of this moving average crossover strategy is good. Using moving averages to determine trend direction is quite accurate. With stop loss and take profit to control risk, the effect is especially significant on trending products like gold. It can be optimized and improved in various ways and has wide application scenarios.
/*backtest start: 2024-01-01 00:00:00 end: 2024-01-31 23:59:59 period: 1h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy("Moving Averages Crossover Strategy", overlay=true) // Moving Averages ma30 = ta.sma(close, 30) ma60 = ta.sma(close, 60) ma200 = ta.sma(close, 200) // Moving Averages Crossover crossoverUp = ta.crossover(ma30, ma200) crossoverDown = ta.crossunder(ma30, ma200) // Buy and Sell Signals longCondition = crossoverUp shortCondition = crossoverDown // Order Execution if (longCondition) strategy.entry("Buy", strategy.long) strategy.exit("Cover", "Buy", stop=close - 40.000, limit=close + 40.000) if (shortCondition) strategy.entry("Sell", strategy.short) strategy.exit("Cover", "Sell", stop=close + 40.000, limit=close - 40.000) // Plotting Moving Averages plot(ma30, color=color.blue, title="MA 30") plot(ma60, color=color.orange, title="MA 60") plot(ma200, color=color.green, title="MA 200") // Conditions to close opposite position if (strategy.position_size > 0) if (crossoverDown) strategy.close("Buy") if (strategy.position_size < 0) if (crossoverUp) strategy.close("Sell")