ADXR Thresholds for Trend Signals with Moving-Average Filtering

Summary

This document presents a trend-following concept that combines ADXR, a smoothed form of ADX, with two moving averages. Its description uses two ADXR thresholds to indicate directional conditions, then proposes requiring price to sit above a fast average for long trades or below a slow average for shorts. The supplied parameters include ADX and ADXR lengths of 14 and thresholds of 13 and 45. The published backtest settings cover BTC/USDT futures over a short period, but the document reports no measured results.

The text notes that indicator and average lengths can delay signals or filter out valid trades, and that ranging markets and false readings pose risks. It recommends broader trend checks, smaller exposure in choppy conditions, additional confirmation, and stop rules. There is a material gap between description and implementation: the supplied code does not apply the moving-average filter. Its threshold state logic also maps low ADXR to long and high ADXR to short, which conflicts with the prose's stated cross directions. Treat the described method and code behavior as distinct until reconciled.

Key ideas

• ADXR smooths ADX and is used here to classify directional market conditions.
• The written strategy combines ADXR thresholds with price filters based on fast and slow moving averages.
• The source code does not implement the moving-average filters described in the text.
• The code's ADXR threshold direction differs from the written explanation, and no performance evidence is supplied.

Tags

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