Recently, I backtested a simple dual moving average strategy using Python and would like to share the results for your reference.
Strategy Logic:- Buy when the short-term moving average (MA7) crosses above the long-term moving average (MA25)
- Sell when the short-term moving average crosses below the long-term moving average
- Backtest period: January 2023 - December 2024
- Asset: BTC/USDT 4-hour candlestick
- Total Return: +127%
- Maximum Drawdown: -23%
- Win Rate: 42%
- Profit-Loss Ratio: 2.3:1
- Number of Trades: 68
The simple strategy performs well in trending markets but tends to hit stop losses frequently in sideways markets. It is recommended to incorporate a trend filter or volatility filter.
Friends who are into quantitative trading can reach out for discussions!
