Smart MA Crossover Backtester — Strategy by pratik-r
By pratik-r
Performance Metrics
- Author: pratik-r
- Symbol: CRYPTO:ETHUSD
- Timeframe: 15 minutes
- Net P&L: +99.04 USD (+0.01%)
- Win Rate: 32.6%
- Profit Factor: 1.035
- Max Drawdown: 473.31 USD (0.05%)
- Total Trades: 135
- Sharpe Ratio: −0.854
Description
Smart MA Crossover Backtester - Strategy OverviewStrategy Name: Smart MA Crossover BacktesterPublished on: TradingViewApplicable Markets: Works well on crypto (tested profitably on ETH)Strategy ConceptThe 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 & LogicMoving Averages (MA) for Entry SignalsFast 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 ProfitUses 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× ATRTake 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× ATRTake Profit: Below entry price by 4× ATRWhy 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. 🚀