40 SMA Scaling Strategy by myers2115

By myers2115

Performance Metrics

Description

This trend-following strategy focuses on capturing momentum when price breaks above the 40-period Simple Moving Average (SMA) while utilizing a systematic scale-out (Take Profit) approach to lock in gains during extended runs.Strategy LogicEntry: Opens a Long position with 100% of current equity when the price closes above the 40 SMA. This ensures maximum capital efficiency at the start of a new perceived trend.Scaling Take Profits: To reduce risk as the trade progresses, the strategy automatically closes 25% of the initial position for every 1% increase in price from the entry point.Exit: The entire remaining position is closed immediately if the price closes below the 40 SMA, acting as a trailing stop that adapts to the moving average.Key FeaturesCapital-Efficient: Starts with a full account allocation to maximize exposure to the initial breakout.Systematic De-risking: By scaling out in 25% increments, the strategy banks profits early while leaving a portion of the trade active for potential "moon shots."Trend-Following Exit: Uses a classic SMA filter to exit, aiming to stay in the trade as long as the medium-term trend remains bullish.

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