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Multi MA Trend Following Strategy Template

Script from: TradingViewSwingTrend followingMomentumBot

Trade the trend's direction using a single moving average. This template offers over 20 MAs, from simple SMAs to SuperTrend. It generates a buy signal when the MA line slopes up and a sell signal when it slopes down. The line color confirms the direction: green for up, red for down. This is a pure trend-following tool that reacts directly to the momentum of your chosen indicator, avoiding the lag from traditional crossovers.

PAX Gold / TetherUS (PAXGUSDT)

+ Multi MA Trend Following Strategy Template

@ 4 h

2.02

Risk Reward

70.78 %

Total ROI

56

Total Trades

Zcash / TetherUS (ZECUSDT)

+ Multi MA Trend Following Strategy Template

@ 2 h

1.96

Risk Reward

2,444.16 %

Total ROI

105

Total Trades

Cronos/Tether (CROUSDT)

+ Multi MA Trend Following Strategy Template

@ 4 h

1.53

Risk Reward

4,368.67 %

Total ROI

60

Total Trades

RENDER / TetherUS (RENDERUSDT)

+ Multi MA Trend Following Strategy Template

@ 4 h

1.39

Risk Reward

398.64 %

Total ROI

42

Total Trades

Cronos/Tether (CROUSDT)

+ Multi MA Trend Following Strategy Template

@ 2 h

1.26

Risk Reward

668.20 %

Total ROI

116

Total Trades

Premium users only

Premium users can access all backtests with a Risk/Reward Ratio > 3

@ 2 h

19.71

Risk Reward

1,111.77 %

Total ROI

18

Total Trades

Premium users only

Premium users can access all backtests with a Risk/Reward Ratio > 3

@ 1 h

5.38

Risk Reward

1,076.17 %

Total ROI

38

Total Trades

SPDR S&P 500 ETF TRUST (SPY)

+ Multi MA Trend Following Strategy Template

@ 4 h

2.55

Risk Reward

66.68 %

Total ROI

16

Total Trades

Costco Wholesale Corporation (COST)

+ Multi MA Trend Following Strategy Template

@ 1 h

2.50

Risk Reward

248.36 %

Total ROI

54

Total Trades

Lumentum Holdings Inc. (LITE)

+ Multi MA Trend Following Strategy Template

@ 1 h

2.49

Risk Reward

485.18 %

Total ROI

60

Total Trades

Sandisk Corporation (SNDK)

+ Multi MA Trend Following Strategy Template

@ 15 min

2.47

Risk Reward

787.35 %

Total ROI

36

Total Trades

Costco Wholesale Corporation (COST)

+ Multi MA Trend Following Strategy Template

@ 2 h

2.40

Risk Reward

120.17 %

Total ROI

31

Total Trades
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Guide

How does the Multi MA Trend Following Strategy Template strategy work ?

This strategy is a versatile trend-following template that lets you test over 20 different types of moving averages and trend lines. Instead of trading on price-crosses, this script bases its signals on the direction of the trend line itself.

The core mechanic is simple:

  • You select one trend indicator from a list that includes EMA, SMA, SuperTrend, HMA, and JMA.
  • A long position is opened when the value of this indicator increases from the previous bar (i.e., the line starts moving up).
  • The position is closed (and a short is opened, if enabled) when the indicator's value decreases.

The plotted line on your chart visually confirms the trend's direction, turning green when it’s rising and red when it’s falling. This allows you to quickly backtest which trend indicator is most effective for a specific asset and timeframe.

How to use the Multi MA Trend Following Strategy Template strategy ?

This trading strategy is a pure trend-following system that uses a single, highly-customizable moving average. It enters a long trade the moment the moving average's slope turns positive (starts rising). It then closes the long and reverses into a short position the moment the slope turns negative (starts falling).

To trade this strategy manually :

  • Indicator Setup: On your TradingView chart, add the "Jurik Moving Average (JMA)" indicator. The script uses this by default with the following settings: Length = 200, Phase = -45, Power = 2. This single line is your only indicator.
  • Long Entry: Enter a long position at the close of the first candle where the JMA line's value is higher than its value on the previous candle. Visually, this is when the JMA line flips from red (or gray) to green.
  • Long Exit / Short Entry: Close your long position at the close of the first candle where the JMA line's value is lower than its value on the previous candle. This is your exit signal and also the entry signal for a short position. Visually, this is when the JMA line flips from green back to red.

How to optimize the Multi MA Trend Following Strategy Template trading strategy ?

This strategy's core weakness is its vulnerability to choppy, sideways markets, where it will generate constant false signals. To make it effective for manual trading, you must add filters to confirm a real trend is in place and refine your entry and exit timing. The goal is to trade less, but with higher probability.

First, implement a trend filter. Add a longer-term moving average to your chart, like a 200-period EMA. Your new rule is simple: only consider taking long signals from the primary strategy (when its line turns green) if the price is trading above the 200 EMA. Conversely, only take short signals (when the line turns red) if the price is below the 200 EMA. This single step will keep you out of many losing trades by forcing you to trade in the direction of the dominant, long-term market bias.

Second, refine your entry trigger. Instead of buying the instant the indicator line turns green, treat that signal as an alert to look for a high-quality entry. A professional approach is to wait for a pullback.

  • Once the primary MA turns green and the price is above the 200 EMA, wait for the price to dip back down to touch or come close to the primary MA line.
  • Enter your long position as the price bounces off the MA, confirming it's acting as dynamic support.
  • Place your stop-loss below the recent swing low that formed before the bounce.

This pullback technique provides a much better risk-to-reward ratio than buying after the price has already extended. Finally, set clear profit targets. Don't just wait for the indicator to reverse direction to exit. Take profits at a key resistance level or when you've achieved a set risk/reward multiple, such as 2:1 or 3:1. This ensures you are systematically banking profits instead of giving them back when the trend inevitably weakens.

For which kind of traders is the Multi MA Trend Following Strategy Template strategy suitable ?

This strategy is built for trend-following swing or position traders. Its design focuses on capturing the main body of a sustained market move, making it ideal for those who prefer holding trades for several days or weeks on higher timeframes like the 4-hour or daily chart. It is not suitable for scalpers or traders who thrive in choppy, range-bound markets.

It's particularly well-suited for:

  • Systematic Traders: The clear, objective rules (buy on upward slope, sell on downward slope) provide a solid foundation for building and backtesting a mechanical trading system.
  • Beginner to Intermediate Traders: The template's simplicity and vast selection of over 20 moving averages offer an excellent educational tool to discover which trend indicators work best for their chosen assets.
  • Patient Traders: Success requires the discipline to stay in a trade through minor pullbacks, trusting the indicator to signal a true trend reversal.

Key Takeaways of Multi MA Trend Following Strategy Template

  • Core Concept: A trend-following system that trades based on the slope of a single moving average, chosen from over 20 types like JMA or SuperTrend.
  • How It Works: The strategy buys when the indicator line begins to slope upwards and sells when it slopes downwards, avoiding the lag of traditional MA crossovers.
  • Ideal Trader: Perfect for systematic swing or position traders on higher timeframes (4H, Daily) who want to capture the main body of a trend.
  • How to Use: It can be fully automated, used to generate alerts for manual review, or traded manually by watching the indicator line's direction change after each candle close.
  • To Enhance It: Add a 200 EMA as a trend filter. Only take long signals when price is above the 200 EMA and short signals when below it to avoid fighting the dominant market direction.
  • Better Risk Management: Instead of entering immediately on a signal, wait for price to pull back to the MA line. This provides a superior entry price, allows for a tighter stop-loss, and improves your risk/reward ratio.
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