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Dual Moving Average Strategy Guidelines

Dual Moving Average Strategy Guidelines

2023-08-08 13:45:36


1、What are Dual Moving Averages?

We can calculate the moving average of each trading day based on the closing price of the previous N days. By connecting these calculated points, we form a line known as the N-day moving average line. Dual moving averages involve calculating two different moving average lines based on different periods, such as a 5-day moving average and a 60-day moving average.


2、Dual Moving Average Strategy

he Dual Moving Average Strategy uses two moving average lines of different lengths to determine the timing for buying and selling. When the short-term moving average line crosses above the long-term moving average line and forms a crossover point (golden cross), the strategy indicates a buying opportunity. Conversely, when the short-term moving average line crosses below the long-term moving average line and forms a crossover point (death cross), the strategy indicates a selling opportunity.

3、Create backtesting to confirm optimal strategy parameters.

Before creating a live trading strategy, you can first conduct backtesting. Fill in the expected parameters, click on the backtest, and the system will automatically backtest the data (default within one month) and generate a reference backtest record. Users can analyze the backtest data and select the optimal parameters for the live trading strategy.


4、Create a live trading strategy and run the strategy.

5、Parameter Explanation

Strategy Name: The strategy name can be customized.

SL Ratio: When the loss ratio of the investment amount exceeds the set automatic stop loss ratio, the strategy will be automatically terminated.

Absolute Profit: When the indicator meets the selling condition, the spot price must be greater than the average holding price to execute the sell order; otherwise, the position will continue to be held.

Balance: Refers to the available balance in the wallet associated with the trading account.

Total Investment: The amount invested in this strategy.

Fast EMA: Parameter 1 used to calculate the Simple Moving Average (SMA) indicator, representing the short-term period.

Slow EMA: Parameter 2 used to calculate the SMA indicator, representing the long-term period.

Period: The time frame (candlestick period) used for strategy execution.

Order quantity: If not filled in by default, the order quantity will be calculated in real-time based on the market price and investment amount. If a specific value is selected, it will be compared with the calculated quantity. If the calculated quantity is higher, the user-set value will be used; otherwise, the calculated value will be used.

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