Backtest a Trading Strategy and Run it on Coinrule

Welcome to Strategy of the Week

Hi there, and welcome to Coinrule’s 13th Strategy of the Week video. This week’s format will be slightly different because it will be streamed live on Twitch. The recording of the livestream will be uploaded to YouTube afterwards. If you are watching the YouTube recording, be sure to join our Discord community so you know when the next livestream is.

This benefits us both, because you can ask questions about the strategy in real time and I can answer them immediately. It is always best if you join live. However, I understand this isn’t always possible due to work commitments, time zone differences, and other factors. Okay, let’s get started.

Introducing the Strategy

This week’s strategy is a slight spin on one of our traditional templates, Moving Average Scalper. As the name suggests, this strategy relies heavily on moving averages and uses them to enter and exit trades. The twist is that this variation includes a fixed take–profit condition. It does not require TradingView signals and is already available as a template on Coinrule, making it very easy to set up.

We also have a TradingView script for backtesting. I will show you how to use it shortly. A simple moving average is calculated by adding recent price changes and dividing by the number of periods. MA9 uses nine closing prices divided by nine. Short–term averages like MA9 react quickly to price changes, while long–term averages like MA200 respond more slowly. The further apart these averages are, the wider the spread between them.

Buy signals occur when a fast moving average crosses above a slow moving average. Sell signals occur when the fast moving average crosses below the slow one.

Entry and Exit Conditions

To enter a position, the strategy requires all of the following conditions. MA9 must cross above MA50, which is our bullish signal. MA50 must be lower than MA100. MA100 must be lower than MA200. Once these align, the strategy enters a long position.

For exits, the strategy closes a position when one of two conditions is met. The first is MA9 crossing above MA200. In that example, the position closed shortly after the crossover and produced around a five percent gain. The second exit condition is an eight percent price increase from entry. Once price rises by that amount, the position is closed.

To backtest, visit our TradingView profile and open the “Moving Average Scalper with Fixed Take Profit” script. The description contains all the conditions we just discussed. Add the script to your favourites. Then open the chart you want to test, such as BTCUSDT on the one–hour timeframe, and apply the indicator.

You will see backtesting results appear immediately. Changing the timeframe adjusts the performance. This strategy generally works well on medium to long timeframes such as one to four hours or the daily chart. Performance varies across pairs. Ethereum on the two–hour chart performs poorly, while Bitcoin on the one–hour chart shows around fifty–two percent net profit and a high win rate of seventy to eighty percent.

Setting Up the Rule on Coinrule

Once you have found the pairings and timeframes you like, go to Coinrule and click “Create Rule”. Search for the strategy name. Select it, and the full template will load. You will see the eight percent take–profit condition included. You can change this if you want, for example testing a five percent take profit instead.

If you want to experiment further, copy the script from TradingView, paste it into Pine Editor, and manually adjust the take–profit percentage or other parameters. Then compare results to find the most effective settings for your needs.

Another advantage of this strategy is that it does not rely on TradingView signals. This means you can use Coinrule’s Any Coin scanner. Instead of limiting the strategy to a single pair, the rule can scan the entire market and open positions wherever conditions appear. This helps maximise profitability and reduces reliance on one chart.