AlphaTrend Signals Using ATR and Money Flow or RSI

Summary

This strategy builds a trailing trend reference from the average true range and a momentum condition. With volume data, it uses the money flow index; when volume data is unavailable, it can use RSI instead. A multiplier controls the distance of the reference from the bar’s low or high, and the reference carries forward rather than moving against its prior direction while the condition persists.

A bullish signal occurs when the reference crosses above its value two bars earlier, and a bearish signal occurs on the reverse cross. These signals open long and short positions. The script also offers optional chart labels, but those do not change the entry logic. Published settings specify BTC/USDT futures data on a four-hour period over about a year; no performance results are provided. The document gives no explicit exit, stop-loss, transaction-cost, or position-sizing rules, so the backtest setup alone does not establish risk-adjusted performance or robustness.

Key ideas

• The strategy compares price-derived ATR bands with a recursively updated trend reference.
• The reference uses money flow index by default and can switch to RSI when volume data is unavailable.
• Crosses against the reference from two bars earlier generate long and short entries.
• Published settings describe a BTC/USDT futures backtest, but the document reports no outcomes or explicit risk controls.

Tags

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