ATR-Based NRTR Reversal Signals and Trade Management
Summary
The document describes an expert advisor that evaluates reversal signals when a new bar appears, while trailing activity continues on each tick. It uses ATR to set a volatility distance by multiplying the ATR value by a volatility coefficient. For a buy trend, it compares the prior bar’s close with the recent minimum over a range tied to the ATR averaging period; a close below that minimum by the volatility distance triggers closing buy positions and opening sell positions. The reverse logic is applied to sell positions.
The stated example uses an ATR averaging period of nine bars and searches from bar two through bar eight. This is a rule description, not an empirical evaluation: no historical results, parameter guidance, or risk controls are given. The source text repeats part of the buy-side logic when describing the reverse case, so the exact sell-side comparison is not fully spelled out.
Key ideas
- Signal checks occur on the appearance of a new bar, while trailing runs on every tick.
- ATR multiplied by a volatility coefficient sets the distance used in reversal decisions.
- A close beyond a recent extreme by that distance can close positions and reverse the trend.
- The extreme-search range is tied to the ATR averaging period.
- The text does not provide backtest evidence or fully specify the sell-side rule.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.