ATR Bands and Moving Averages for Trend Entries with Fixed Stops

Summary

This Pine Script strategy combines a selectable moving average trend filter with ATR based bands to identify directional moves. Its description lists breakout confirmation and pullback entries, with a choice of moving average types and controls for ATR length, multiplier, and consecutive bars outside a band. An optional filter permits trades only when ATR exceeds its own moving average, aiming to avoid low volatility conditions. The script sets position size as a percentage of equity and includes commission and slippage assumptions for strategy testing.

The excerpt also describes tracking favorable and adverse excursions and their percentiles, but the title identifies this as a fixed take profit and stop loss version. The provided source ends during the input definitions, before the entry, exit, and analytics logic appears, so those details cannot be checked here. No backtest results or evidence of profitability are included; the stated settings are configurable and would need evaluation across markets and timeframes.

Key ideas

• A moving average filter provides trend direction while ATR bands define potential trend signals.
• The described entry approaches are breakout confirmation and pullback entry after a moving average cross.
• Consecutive bar confirmation can reduce noisy signals at the cost of later entries.
• An optional ATR filter blocks trades when volatility is below its moving average.
• The excerpt does not show the strategy's order or exit logic or any performance results.

Tags

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