ADX-Regime Switching Between Trend Following and Bollinger Band Reversals

Summary

This system uses ADX to choose between two trading modes. Above the stated threshold of 25, it follows trends using 50- and 200-day moving-average crossovers, with RSI and MACD conditions for confirmation. At or below that threshold, it trades range signals when price crosses a Bollinger Band boundary alongside an RSI reading intended to identify an extreme. Both long and short entries are described, with ATR-based stop and target levels.

The document explains the rules and lists risks such as moving-average lag, false band breaks, parameter sensitivity, and errors during transitions between trending and ranging conditions. Published settings specify ETH/USDT on Binance at an hourly period for roughly six months, but no backtest results or performance measures are supplied. The account also does not establish that the regime switch improves results; the rules need testing across instruments and market conditions, with attention to execution and costs.

Key ideas

• ADX above 25 selects the moving-average trend strategy, while lower readings select the range strategy.
• Trend entries use 50- and 200-day moving-average crosses with RSI and MACD confirmation.
• Range entries combine Bollinger Band crosses with RSI thresholds, and both directions are allowed.
• ATR multiples define the stated stop-loss and take-profit distances.
• The document supplies backtest settings but no measured strategy results.

Tags

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