ATR-Based Trailing Stops for UT Bot Trend Signals

Summary

This UT Bot implementation uses an Average True Range-based trailing stop to track price direction. The stop distance is the ATR multiplied by an adjustable factor, with a configurable ATR period and price source. As price remains on one side of the stop, the stop ratchets in that direction; a crossover of price and stop marks a change in direction. The script generates long and short entries from confirmed bar-close crossovers and offers optional date filtering, signal and stop-line display, bar coloring, and alerts.

The script exposes a method for adapting stop distance to recent volatility: a larger multiplier widens the stop and is described as producing fewer trend flips. It provides no backtest results, market-specific settings, or evidence that the crossover signals are profitable. Like other trailing-stop systems, its signals can lag and may flip repeatedly in choppy conditions; the excerpt does not specify additional risk controls or transaction-cost analysis. Its logic and configurable inputs are explained, but performance requires separate testing for the intended market and timeframe.

Key ideas

• The trailing stop distance is based on ATR multiplied by a configurable factor.
• The stop ratchets with price while price remains on the same side of it.
• Confirmed crossovers of price and the stop generate long or short entries.
• A wider multiplier is described as creating wider stops and fewer trend changes.
• The supplied material reports no strategy performance or market-specific validation.

Tags

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