The Simple Moving Average (SMA) Entry Settings allow you to control when your bot enters a trade based on whether the asset is trading above or below a chosen moving average line. This makes it easy to automate strategies that depend on trend direction.
A Simple Moving Average (SMA) is a technical indicator that shows the average price of an asset over a set number of days.
A 50-period SMA shows the average closing price of the last 50 days.
A 200-period SMA shows the average closing price of the last 200 days.
The SMA helps traders identify long-term trends:
Above the SMA = the asset may be in an uptrend.
Below the SMA = the asset may be in a downtrend.
When creating or editing an Auto Trader, you’ll find the SMA Entry Rule under Entry Settings.
Period: The length of the SMA you want to use (e.g., 50, 100, 200). The calculation is always based on the daily chart.
Direction: Whether the bot should only enter if the asset price is above or below the selected SMA.
SMA Entry Settings are available for ETFs, Stocks, and Index Options. They do not apply to futures options. If used with a futures options Auto Trader, the SMA is based on SPY instead of the futures contract.
Trend-Following Strategy
You want to only take trades in an uptrend.
Set Period = 200 and Direction = Above.
The bot will only enter trades if the asset is trading above the 200-day SMA.
Mean Reversion Strategy
You want to trade assets that are weak and trading below trend.
Set Period = 50 and Direction = Below.
The bot will only enter trades if the asset is below the 50-day SMA.
Ensures trades align with your trend-based strategy.
Filters out trades that don’t fit your preferred market direction.
Allows easy automation of classic strategies like “trade only above the 200-day SMA.”
SMA Entry Rules use the daily chart for calculation.
You set a Period (e.g., 50, 100, 200) and a Direction (above or below).
Works with ETFs, Stocks, and Index Options (SPY is used for futures).
Helps automate trend-following or mean reversion strategies.
