mirrornew/2026doublemafuturesstrategy

This repository contains a trading strategy for Ethereum futures, designed for research and backtesting using a tool called Freqtrade, an open-source automated trading framework. The strategy is not meant for live trading and is explicitly marked as research-only, think of it as a recipe for how a bot might trade ETH, which you can test against historical data to see how it would have performed. The strategy is built around a "double moving average compression breakout" system. A moving average smooths out price data over time to help identify trends. This strategy watches for moments when several moving averages (5-period, 10-period, and 30-period) squeeze together, then waits for the price to break out in either direction, up or down, and confirms the move by watching for the first pullback. It trades ETH/USDT perpetual futures with an effective 2x leverage, meaning it can amplify both gains and losses compared to simply holding ETH. Backtesting results in the README cover roughly five years of data (May 2021 to May 2026), showing about 291 total trades at a 36% win rate and a 154% total profit over the full period, compared to ETH buy-and-hold which was slightly negative (-7.95%) during the same window. The repository also includes a Monte Carlo stress test, a simulation that generates thousands of randomized market scenarios including crash events, to assess how robust the strategy is under unusual conditions. To try it yourself, you install Python via Conda, install Freqtrade and optionally Pandas for data handling, then run the backtesting command provided. The main strategy logic lives in a single Python file under the user_data/strategies folder.