How It Trades
- Compute two simple moving averages of the close: a fast one over 20 bars and a slow one over 50.
- Buy when the fast SMA crosses above the slow one.
- Sell when it crosses back below. Every close in the window counts the same here, and the oldest leaves the average entirely once it ages past the span, so this turns later than the weighted and exponential versions of the same pair, and serves as the baseline they are measured against.
Example Strategy
Pine Script
Paste it into TradingView’s Pine Editor to run these rules on any chart.
//@version=6
// SMA 20 50 Crossover — sort.finance. Fills at the signal bar's close, 0.02% fee a side,
// whole account per trade, as the backtest. History and indicator warm-up
// differ from the site's, so expect close to the same trades, not identical.
strategy("SMA 20 50 Crossover", overlay=true,
initial_capital=100, default_qty_type=strategy.percent_of_equity,
default_qty_value=100, commission_type=strategy.commission.percent,
commission_value=0.02, process_orders_on_close=true, pyramiding=0)
// The bar the current position opened on, and the bar the last one closed on.
var int entryBar = na
var int exitBar = -1
// ── Signals ──────────────────────────────────────────────────────────────
fast = ta.sma(close, 20)
slow = ta.sma(close, 50)
above = fast > slow
enterNow = above and not above[1]
exitNow = not above and above[1]
// ── Orders ───────────────────────────────────────────────────────────────
// Open on the first bar the entry holds while flat; close on the first
// later bar the exit holds; never reopen on the bar a position closed.
inTrade = strategy.position_size != 0
if inTrade and bar_index > entryBar and exitNow
strategy.close("Long")
exitBar := bar_index
else if not inTrade and bar_index > exitBar and enterNow
strategy.entry("Long", strategy.long)
entryBar := bar_index
// ── Drawing ──────────────────────────────────────────────────────────────
plot(fast, "SMA 20", color=#4d8dff)
plot(slow, "SMA 50", color=#e0a03a)