Fibonacci Moving Averages Input Strategy

Pine ScriptTrend following EMA SMA Fibonacci

Author: ChaoZhang
Complexity: Intermediate · 223 lines
Parameters: 55
Backtest bar: 1d · swing
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

Overview

The Fibonacci Moving Averages Input strategy is based on moving average crossover or crossunder signals to generate trading signals. When the short-term moving average crosses above the long-term moving average, a bullish golden cross signal is generated. When the short-term moving average crosses below the long-term moving average, a bearish death cross signal is generated. The commonly used moving averages are the 50-day and 200-day moving averages.

The Fibonacci Moving Averages Input (FibMAI) strategy allows you to choose any value for your bullish or bearish crosses. For visual display, I have plotted Fibonacci moving averages including 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987 while hiding the candlesticks. But to use this indicator, I only enable a couple of MA's to check if there's a notable crossover or crossunder pattern, then backtest those values into the FibMAI strategy Long or Short settings input.

For example, the Long or Short settings input for this NQ1! day chart is:

Bullish = FibEMA34 crossover FibEMA144

Bearish = FibEMA55 crossunder FibSMA144

As you can see, you can mix and match 4 different MA values, either Exponential or Simple.

Default color settings: Rising value = green color Falling value = red color

Default Visual FibMA settings: FibEMA 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181

Default Visual MA settings: SMA 50, 100, 150, 200

Default Long or Short settings: Bullish = FibEMA34 crossover FibEMA144

Bearish = FibEMA55 crossunder FibSMA144

Principle

The core logic of this strategy is based on crossover signals between two moving averages to generate trading signals.

Moving averages are technical indicators used to analyze market trends. They calculate the average closing price over a certain period and can effectively filter market fluctuations. There are two types of moving averages - Simple Moving Average (SMA) and Exponential Moving Average (EMA).

SMA is the simple arithmetic average of closing prices over a period. EMA applies exponential smoothing to closing prices, giving more weight to recent prices. EMA reacts more quickly to price changes.

When the short-term moving average crosses above the long-term moving average, it signals a bullish trend change and generates a buy signal. This is called a "golden cross". Conversely, when the short-term moving average crosses below the long-term moving average, it signals a bearish trend change and generates a sell signal. This is called a "death cross".

The flexibility of this strategy lies in the ability to manually set the parameters for the 4 moving averages. The default parameters are 34-period EMA crossing above 144-period EMA for bullish signal, and 55-period SMA crossing below 144-period EMA for bearish signal. These parameters can be freely adjusted in the input boxes.

In addition, the strategy plots multiple Fibonacci sequence moving averages across different timeframes. Common moving averages like 50-day, 100-day, 150-day and 200-day are also plotted. These serve as references, while the key is the crossover moving averages entered in the Long/Short settings.

Advantages

The advantages of this moving average crossover strategy include:

Using moving averages filters market noise and identifies trend direction
Crossover signals have a certain degree of reliability
Customizable long and short moving average combinations for parameter optimization
Incorporates multiple timeframes to identify trends
Can use both EMA and SMA based on instrument characteristics
Visually intuitive with colored moving average crosses
Simple to understand and suitable for beginners
Flexibly applied across different instruments with universality

Risks

There are also some risks to this strategy:

Too many whipsaw signals during choppy markets, leading to over-trading
Incorrect signals if unsuitable moving average combinations are used
Lag in signals during extreme trend reversals, unable to reflect price changes in time
Moving average crosses do not completely avoid losses, need reasonable stop loss
Over-optimization causing curve fitting. Parameters need to be robust across market cycles.
Parameters may need fine-tuning for different instruments

Optimization Directions

Some ways to optimize this strategy:

Test different long and short moving average combinations to find optimal parameters using backtesting
Try adjusting moving average types, compare SMA and EMA performances. Use SMA for instruments with clearer trends, and EMA for more volatile instruments.
Incorporate other indicators like KDJ, MACD to filter false signals and improve quality
Add stop loss strategies to control loss on single trades, such as trailing stop loss
Optimize money management strategies, like adjusting position sizing based on drawdown
Test parameter stability across different instruments and timeframes to evaluate robustness

Conclusion

Overall, the Fibonacci Moving Averages Input strategy is a reliable trend following system. It uses simple and intuitive moving average crosses for trade signals, and can be adapted to different instruments through parameter optimization. With proper stop loss and money management, risks can be controlled. Over-optimization and lagging trend reversal signals should be avoided. With well-chosen parameters and trading discipline, this can be an efficient and stable profit-generating strategy.

Parameters

Name	Default	What it controls
v_input_1_ohlc4	0	source: ohlc4 \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| close
v_input_int_1	34	long
v_input_3	true	crossover EMA or SMA
v_input_int_2	144	crossover
v_input_4	true	short EMA or SMA
v_input_int_3	55	short
v_input_5	false	crossunder EMA or SMA
v_input_int_4	144	crossunder
v_input_7	true	MA1
v_input_int_5	true	ma Length
v_input_8	true	MA2
v_input_int_6	2	ma Length
v_input_9	true	MA3
v_input_int_7	3	ma Length
v_input_10	true	MA5
v_input_int_8	5	ma Length
v_input_11	true	MA8
v_input_int_9	8	ma Length
v_input_12	true	MA13
v_input_int_10	13	ma Length
v_input_13	true	MA21
v_input_int_11	21	ma Length
v_input_14	true	MA34
v_input_int_12	34	ma Length
v_input_15	true	MA55
v_input_int_13	55	ma Length
v_input_16	true	MA89
v_input_int_14	89	ma Length
v_input_17	true	MA144
v_input_int_15	144	ma Length
v_input_18	true	MA233
v_input_int_16	233	ma Length
v_input_19	true	MA377
v_input_int_17	377	ma Length
v_input_20	true	MA610
v_input_int_18	610	ma Length
v_input_21	true	MA987
v_input_int_19	987	ma Length
v_input_22	true	MA1597
v_input_int_20	1597	ma Length
v_input_23	true	MA2584
v_input_int_21	2584	ma Length
v_input_24	true	MA4181
v_input_int_22	4181	ma Length
v_input_26	true	MA50
v_input_int_23	50	ma Length
v_input_27	true	MA100
v_input_int_24	100	ma Length
v_input_28	true	MA150
v_input_int_25	150	ma Length
v_input_29	true	MA200
v_input_int_26	200	ma Length
v_input_2	true	(?Long or Short Settings)long EMA or SMA
v_input_6	true	(?Visual FibMA Settings)Fib EMA or SMA
v_input_25	false	(?Visual MA Settings)EMA or SMA

Source Pine Script

/*backtest
start: 2022-10-25 00:00:00
end: 2023-10-31 00:00:00
period: 1d
basePeriod: 1h
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

//@version=5
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © Options360 : Fibonacci MAI (Moving Averages Input) beta 10/15/22
// © Options360 original public release = 2/25/23
// * This script uses altered pieces of code from my @Options360 "Fibonacci MA7" indicator*
// 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, 6765, 10946, 17711, 28657, 46368, 75025, 121393, 196418, 317811
////
strategy(title="Fibonacci Moving Averages Input", shorttitle = "FibMAI", overlay=true)

src = input(ohlc4, 'source')
//
string  GRP = "Long or Short Settings"
exponential1 = input(true, title="long EMA or SMA", tooltip="EMA checked or SMA unchecked", group = GRP)
long = input.int(34, minval=1, title="long", tooltip="Signal Moving average long input")
long1 = exponential1 ? ta.ema(src, long) : ta.sma(src, long)

exponential2 = input(true, title="crossover EMA or SMA", tooltip="EMA checked or SMA unchecked")
longer = input.int(144, minval=1, title="crossover", tooltip="Crossed over Moving average long input")
long2 = exponential2 ? ta.ema(src, longer) : ta.sma(src, longer)

exponential3 = input(true, title="short EMA or SMA", tooltip="EMA checked or SMA unchecked")
short = input.int(55, minval=1, title="short", tooltip="Signal Moving average short input")
short1 = exponential3 ? ta.ema(src, short) : ta.sma(src, short)

exponential4 = input(false, title="crossunder EMA or SMA", tooltip="EMA checked or SMA unchecked")
shorter = input.int(144, minval=1, title="crossunder", tooltip="Crossed under Moving average short input")
short2 = exponential4 ? ta.ema(src, shorter) : ta.sma(src, shorter)
//
string  GRP2 = "Visual FibMA Settings"
exponential = input(true, title="Fib EMA or SMA", tooltip="EMA checked or SMA unchecked", group = GRP2)
//
smaplot11 = input (true, title="MA1")
len11 = input.int(1, minval=1, title="ma Length")
out11 = exponential ? ta.ema(src, len11) : ta.sma(src, len11)
up11 = out11 > out11[1]
down11 = out11 < out11[1]
mycolor11 = up11 ? #3cfe12 : down11 ? #ff0202 : #008eff
plot(out11 and smaplot11 ? out11 :na, title="1", color=mycolor11, linewidth=1)

smaplot18 = input (true, title="MA2")
len18 = input.int(2, minval=1, title="ma Length")
out18 = exponential ? ta.ema(src, len18) : ta.sma(src, len18)
up18 = out18 > out18[1]
down18 = out18 < out18[1]
mycolor18 = up18 ? #3cfe12 : down18 ? #ff0202 : #008eff
plot(out18 and smaplot18 ? out18 :na , title="2", color=mycolor18, linewidth=1)

smaplot13 = input (true, title="MA3")
len13 = input.int(3, minval=1, title="ma Length")
out13 = exponential ? ta.ema(src, len13) : ta.sma(src, len13)
up13 = out13 > out13[1]
down13 = out13 < out13[1]
mycolor13 = up13 ? #3cfe12 : down13 ? #ff0202 : #008eff
plot(out13 and smaplot13 ? out13 :na , title="3", color=mycolor11, linewidth=1)

smaplot9 = input (true, title="MA5")
len9 = input.int(5, minval=1, title="ma Length")
out9 = exponential ? ta.ema(src, len9) : ta.sma(src, len9)
up9 = out9 > out9[1]
down9 = out9 < out9[1]
mycolor9 = up9 ? #3cfe12 : down9 ? #ff0202 : #008eff
plot(out9 and smaplot9 ? out9 :na , title="5", color=mycolor9, linewidth=1)

smaplot8 = input (true, title="MA8")
len8 = input.int(8, minval=1, title="ma Length")
out8 = exponential ? ta.ema(src, len8) : ta.sma(src, len8)
up8 = out8 > out8[1]
down8 = out8 < out8[1]
mycolor8 = up8 ? #3cfe12 : down8 ? #ff0202 : #008eff
plot(out8 and smaplot8 ? out8 :na , title="8", color=mycolor8, linewidth=1)

smaplot7 = input (true, title="MA13")
len7 = input.int(13, minval=1, title="ma Length")
out7 = exponential ? ta.ema(src, len7) : ta.sma(src, len7)
up7 = out7 > out7[1]
down7 = out7 < out7[1]
mycolor7 = up7 ? #3cfe12 : down7 ? #ff0202 : #008eff
plot(out7 and smaplot7 ? out7 :na , title="13", color=mycolor7, linewidth=1)

smaplot = input (true, title="MA21")
len = input.int(21, minval=1, title="ma Length")
out = exponential ? ta.ema(src, len) : ta.sma(src, len)
up = out > out[1]
down = out < out[1]
mycolor = up ? #3cfe12 : down ? #ff0202 : #008eff
plot(out and smaplot ? out :na, title="21", color=mycolor, linewidth=1)

smaplot2 = input (true, title="MA34")
len2 = input.int(34, minval=1, title="ma Length")
out2 = exponential ? ta.ema(src, len2) : ta.sma(src, len2)
up2 = out2 > out2[1]
down2 = out2 < out2[1]
mycolor2 = up2 ? #3cfe12 : down2 ? #ff0202 : #008eff
plot(out2 and smaplot2 ? out2 :na , title="34", color=mycolor2, linewidth=1)

smaplot3 = input (true, title="MA55")
len3 = input.int(55, minval=1, title="ma Length")
out3 = exponential ? ta.ema(src, len3) : ta.sma(src, len3)
up3 = out3 > out3[1]
down3 = out3 < out3[1]
mycolor3 = up3 ? #3cfe12 : down3 ? #ff0202 : #008eff
plot(out3 and smaplot3 ? out3 :na, title="55", color=mycolor3, linewidth=1)

smaplot4 = input (true, title="MA89")
len4 = input.int(89, minval=1, title="ma Length")
out4 = exponential ? ta.ema(src, len4) : ta.sma(src, len4)
up4 = out4 > out4[1]
down4 = out4 < out4[1]
mycolor4 = up4 ? #3cfe12 : down4 ? #ff0202 : #008eff
plot(out4 and smaplot4 ? out4 :na , title="89", color=mycolor4, linewidth=1)

smaplot5 = input (true, title="MA144")
len5 = input.int(144, minval=1, title="ma Length")
out5 = exponential ? ta.ema(src, len5) : ta.sma(src, len5)
up5 = out5 > out5[1]
down5 = out5 < out5[1]
mycolor5 = up5 ? #3cfe12 : down5 ? #ff0202 : #008eff
plot(out5 and smaplot5 ? out5 :na, title="144", color=mycolor5, linewidth=1)

smaplot6 = input (true, title="MA233")
len6 = input.int(233, minval=1, title="ma Length")
out6 = exponential ? ta.ema(src, len6) : ta.sma(src, len6)
up6 = out6 > out6[1]
down6 = out6 < out6[1]
mycolor6 = up6 ? #3cfe12 : down6 ? #ff0202 : #008eff
plot(out6 and smaplot6 ? out6 :na , title="233", color=mycolor6, linewidth=1)

smaplot10 = input (true, title="MA377")
len10 = input.int(377, minval=1, title="ma Length")
out10 = exponential ? ta.ema(src, len10) : ta.sma(src, len10)
up10 = out10 > out10[1]
down10 = out10 < out10[1]
mycolor10 = up10 ? #3cfe12 : down10 ? #ff0202 : #008eff
plot(out10 and smaplot10 ? out10 :na , title="377", color=mycolor10, linewidth=1)

smaplot14 = input (true, title="MA610")
len14 = input.int(610, minval=1, title="ma Length")
out14 = exponential ? ta.ema(src, len14) : ta.sma(src, len14)
up14 = out14 > out14[1]
down14 = out14 < out14[1]
mycolor14 = up14 ? #3cfe12 : down14 ? #ff0202 : #008eff
plot(out14 and smaplot14 ? out14 :na , title="610", color=mycolor14, linewidth=1)

smaplot15 = input (true, title="MA987")
len15 = input.int(987, minval=1, title="ma Length")
out15 = exponential ? ta.ema(src, len15) : ta.sma(src, len15)
up15 = out15 > out15[1]
down15 = out15 < out15[1]
mycolor15 = up15 ? #3cfe12 : down15 ? #ff0202 : #008eff
plot(out15 and smaplot15 ? out15 :na , title="987", color=mycolor15, linewidth=1)

smaplot16 = input (true, title="MA1597")
len16 = input.int(1597, minval=1, title="ma Length")
out16 = exponential ? ta.ema(src, len16) : ta.sma(src, len16)
up16 = out16 > out16[1]
down16 = out16 < out16[1]
mycolor16 = up16 ? #3cfe12 : down16 ? #ff0202 : #008eff
plot(out16 and smaplot16 ? out16 :na , title="1597", color=mycolor16, linewidth=1)

smaplot17 = input (true, title="MA2584")
len17 = input.int(2584, minval=1, title="ma Length")
out17 = exponential ? ta.ema(src, len17) : ta.sma(src, len17)
up17 = out17 > out17[1]
down17 = out17 < out17[1]
mycolor17 = up17 ? #3cfe12 : down17 ? #ff0202 : #008eff
plot(out17 and smaplot17 ? out17 :na , title="2584", color=mycolor17, linewidth=1)

smaplot19 = input (true, title="MA4181")
len19 = input.int(4181, minval=1, title="ma Length")
out19 = exponential ? ta.ema(src, len19) : ta.sma(src, len19)
up19 = out19 > out19[1]
down19 = out19 < out19[1]
mycolor19 = up19 ? #3cfe12 : down19 ? #ff0202 : #008eff
plot(out19 and smaplot19 ? out19 :na , title="4181", color=mycolor19, linewidth=1)
//
string  GRP3 = "Visual MA Settings"
exponential5 = input(false, title="EMA or SMA", tooltip="EMA checked or SMA unchecked", group = GRP3)

smaplot50 = input (true, title="MA50")
len50 = input.int(50, minval=1, title="ma Length")
ma50 = exponential5 ? ta.ema(src, len50) : ta.sma(src, len50)
up50 = ma50 > ma50[1]
down50 = ma50 < ma50[1]
mycolor50 = up50 ? #3cfe12 : down50 ? #ff0202 : #008eff
plot(ma50 and smaplot50 ? ma50 :na , title="50", color=mycolor50, linewidth=1)

smaplot100 = input (true, title="MA100")
len100 = input.int(100, minval=1, title="ma Length")
ma100 = exponential5 ? ta.ema(src, len100) : ta.sma(src, len100)
up100 = ma100 > ma100[1]
down100 = ma100 < ma100[1]
mycolor100 = up100 ? #3cfe12 : down100 ? #ff0202 : #008eff
plot(ma100 and smaplot100 ? ma100 :na , title="100", color=mycolor100, linewidth=1)

smaplot150 = input (true, title="MA150")
len150 = input.int(150, minval=1, title="ma Length")
ma150 = exponential5 ? ta.ema(src, len150) : ta.sma(src, len150)
up150 = ma150 > ma150[1]
down150 = ma150 < ma150[1]
mycolor150 = up150 ? #3cfe12 : down150 ? #ff0202 : #008eff
plot(ma150 and smaplot150 ? ma150 :na , title="150", color=mycolor150, linewidth=1)

smaplot200 = input (true, title="MA200")
len200 = input.int(200, minval=1, title="ma Length")
ma200 = exponential5 ? ta.ema(src, len200) : ta.sma(src, len200)
up200 = ma200 > ma200[1]
down200 = ma200 < ma200[1]
mycolor200 = up200 ? #3cfe12 : down200 ? #ff0202 : #008eff
plot(ma200 and smaplot200 ? ma200 :na , title="200", color=mycolor200, linewidth=1)
//
if (ta.crossover(long1, long2))
	strategy.entry("maL", strategy.long, comment="maLong")
if (ta.crossunder(short1, short2))
	strategy.entry("maS", strategy.short, comment="maShort")
////

Published by ChaoZhang on the FMZ strategy square · last modified 2023-11-01. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

Build this with AgenKit

A spec is not a trading system. Paste this into your coding agent and AgenKit runs a specialist team — architecture, test-first build, risk gates, review — with paper trading on by default.

in Claude Code, Cursor, Codex & 4 more

/agenkit build a production-grade trading bot with a backtest engine, risk controls and paper trading by default from strategies/Fibonacci-Moving-Averages-Input-Strategy.md

npx agenkit install engineering-kit in your project
Paste the command into your agent and approve each phase
Get tests, backtest, risk controls and a paper-trading switch

Get AgenKit How /agenkit works

Understand it first

Before you run this, read the lesson behind the idea and how to backtest it honestly. Specs like this one are the survivors of an unknown number of trials; deflate their results accordingly.