ATR-Adjusted Trend Entries with Fixed Targets and Re-entry

Summary

This long-only trend-following design compares the close with an upper band formed by a moving average of highs plus an ATR adjustment. The ATR input is itself smoothed over a long window. A close crossing above the upper band opens a position; the strategy places a stop two ATR units below entry and a target five ATR units plus an adjustable amount above it. After an exit, it attempts to re-enter if price returns exactly to the saved entry price. The published settings use daily BTC/USDT futures data over roughly a year, but provide no performance statistics.

The document presents volatility-scaled exits and re-entry as ways to adapt to market movement and participate again after a pullback. It also notes risks from reversals, repeated stop-outs, slippage, and parameter sensitivity. The exact-price re-entry condition and state handling merit careful review: the description does not establish that this mechanism works robustly in live execution, and chart display limits do not alter trading risk. The proposed filters and trailing stops are ideas for future evaluation, not tested results.

Key ideas

• A long entry is triggered when the close crosses above a high-based moving average adjusted by ATR.
• The stated stop is two ATR units below entry, while the target is five ATR units plus an adjustable multiplier above it.
• After exit, the strategy attempts to re-enter when price equals the stored entry price.
• ATR-based distances scale exits with volatility, but do not prevent repeated losses in ranging markets.
• The document supplies daily BTC/USDT futures backtest dates but no reported performance results.

Tags

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