ADX-Adaptive ATR Trends with Aligned Triggers and Reset Locks

Summary

This scalping strategy builds two ATR-based trend lines, one for the main direction and another for faster entry and exit signals. Their multipliers change with ADX conditions: the script selects between configured values based on whether ADX is rising below a threshold, and directional movement affects the bands. It enters only when both trend directions align and there is no open position or active reset lock.

A position exits when the fast direction reverses or when its percentage stop-loss or take-profit is reached. After any position closes, the lock blocks another entry until either trend direction changes. The document gives configurable periods, multipliers, and exit percentages, and suggests short chart intervals and liquid markets, but provides no performance results. The settings are recommendations rather than demonstrated evidence; transaction costs, slippage, instrument behavior, and parameter sensitivity can materially affect short-term results. The code and description should be evaluated independently before live use.

Key ideas

• The strategy combines a main ATR trend filter with a faster ATR trigger.
• ADX conditions select between configured ATR multipliers, while directional movement shapes the bands.
• Entries require aligned main and fast trends and an unlocked, flat strategy state.
• Trend reversals, percentage stop losses, and percentage profit targets can close positions.
• After a close, a reset lock waits for a trend-direction change before allowing another entry.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.