ATR-Adaptive Trend Reversals with Volatility-Based Exits
Summary
This strategy builds a trend line that advances in ATR-sized steps. It switches between faster and slower step sizes according to how far price has moved from the line, and changes trend direction when price crosses the line by a reversal threshold measured in ATR. Users can enable long trades, short trades, or both.
On a reversal, the script sets a stop loss and profit target at configurable ATR multiples, then displays trade counts and win rates by direction and overall. Its source provides the rules and defaults for a TradingView backtest, including commission and cash sizing settings, but the document gives no performance results or market-specific evaluation. The accompanying description's stated allocation differs from the source's configured trade value, so sizing claims should be checked against the code. Win rate alone also does not establish profitability, and the displayed historical figures do not validate live execution or future results.
Key ideas
- The trend baseline moves in ATR-scaled increments and adapts between two step speeds.
- A direction change requires price to cross the baseline by a configurable ATR threshold.
- Stops and profit targets are set from ATR multiples when a reversal signal occurs.
- The script tracks long and short win rates, but reports no evidence that the strategy is profitable.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.