200-Day Moving Average Trend¶
What it does: Holds while the daily price is above its 200-day average and steps aside below it. This buys when the daily close crosses above the 200-day average and sells when it crosses back below. An optional stop-loss acts as a crash safety net.
Style: Trend · Difficulty: Beginner · Risk: medium · Ready: 2 of 2 variants
When people use it: It tends to work in trends that last months.
Where it struggles: It struggles in long sideways markets around the average: repeated small losses, each paying fees. It needs closed daily candles; reacting inside the candle would whipsaw around the line.
Markets it was written for: BTC, ETH. Timeframes: 1d.
Open it in the Strategy Library (on the Strategies page), pick a variant, adjust the settings and press Add to my strategies. It becomes your own strategy: edit, backtest or trade it like any other.
Long (spot)¶
Holds while the daily price is above its 200-day average and steps aside below it.
Labels: Trend Following, Long, Spot, Beginner, Slow
- Direction: Buy (long) · Market: spot
- Trigger: On candle close · Main timeframe: Auto (1d)
Entry
- IF Price crosses above SMA(200) (1d)
Exit: Indicator-Based Exit
- IF Price crosses below SMA(200) (1d)
- Loss controls: Stop-loss % 15%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| Average length | 200 | Yes (sets 2 fields) | Length of the trend average, in days. Shorter (down to 20) reacts sooner and trades more, with more whipsaws; longer trades less. Changes both the entry and the exit. |
| Stop-loss % | 15 | Yes | Closes the trade if the price moves this far against your entry. Tighter limits each loss but gets hit more often by normal swings; wider gives the trade more room but each losing trade costs more. If you use leverage, keep it well inside your liquidation distance. |
How it works (as shown in the app)
- This buys when the daily close crosses above the 200-day average and sells when it crosses back below. An optional stop-loss acts as a crash safety net.
- It tends to work in trends that last months.
- It struggles in long sideways markets around the average: repeated small losses, each paying fees.
- It needs closed daily candles; reacting inside the candle would whipsaw around the line.
Short (perp)¶
Stays short while the daily price is below its 200-day average.
Labels: Trend Following, Short, Futures, Slow, Backtest Only
- Direction: Sell (short) · Market: swap
- Trigger: On candle close · Main timeframe: Auto (1d)
Entry
- IF Price crosses below SMA(200) (1d)
Exit: Indicator-Based Exit
- IF Price crosses above SMA(200) (1d)
- Loss controls: Stop-loss % 12%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| Average length | 200 | Yes (sets 2 fields) | Length of the trend average, in days. Shorter (down to 20) reacts sooner and trades more, with more whipsaws; longer trades less. Changes both the entry and the exit. |
| Stop-loss % | 12 | Yes | Closes the trade if the price moves this far against your entry. Tighter limits each loss but gets hit more often by normal swings; wider gives the trade more room but each losing trade costs more. If you use leverage, keep it well inside your liquidation distance. |
How it works (as shown in the app)
- This shorts when the daily close crosses below the 200-day average and buys back when it crosses back above. An optional stop-loss acts as a safety net against a sharp rally.
- It tends to work in downtrends that last months.
- It struggles in long sideways markets around the average: repeated small losses, each paying fees.
- It needs closed daily candles; reacting inside the candle would whipsaw around the line.
- Shorting means you profit if the price falls and lose if it rises.
- Suggested leverage is at most 2x. On isolated margin, at 2x the exchange closes the position (liquidation) if the price moves about 49.7% against you, and you lose the margin you put into it. Keep your stop well inside that.
- For now this version runs in backtests only; paper and live futures trading are coming later.
Warnings¶
- "Backtest only for now: paper and live trading of shorts are coming later.": shown on short variants. They need perpetual or futures pairs.
- Some variants suggest leverage. On isolated margin a liquidation loses the margin in that position; keep any stop well inside the liquidation distance (the Trade Builder warns you when it isn't).
- Once added, the strategy's conditions get the usual condition checks. Messages show under each condition on the entry / exit conditions screen; setting errors start with the indicator's short name (for example "MACD: Fast must be between 1 and 1000") and block saving, while the other warnings never block saving and repeat in the strategy's Entry or Exit section. See the indicator pages below for each one.
- "You already have this strategy with these settings (…). Change a setting to add another copy.": shown on the variant's page in the Strategy Library when you already added this variant with the same settings.
Good to know¶
- After you add it, the strategy keeps the library's trigger and an Auto main timeframe; you can change both in the builder. Nothing links it back to the library, except that the builder still shows the library's explanations in the info bubbles.
- Changing a setting before adding it also changes the saved name, so you can tell copies apart.
- Past results don't predict future ones. Try it in a backtest and on paper before using real money.
- Indicators used: SMA.