ATR Trailing Bands with Percentage-Based Trade Exits

Summary

This strategy uses Average True Range (ATR) to create adaptive upper and lower bands for identifying trend changes. With the stated default settings, it calculates volatility over a configurable lookback and scales the bands by an ATR multiplier. The code maintains trailing band values and switches trend state when price crosses the relevant prior band; a change into an uptrend triggers a long entry. A date window can restrict when entries are allowed.

Open long positions receive a limit take-profit and stop-loss based on percentages of average entry price. The document also describes chart highlighting and an optional ATR calculation method, and provides BTC-USDT futures backtest dates spanning 2019 to 2024. It reports no backtest results, so its claims about adaptability or risk control are not supported by outcome data. The implementation only shows long entries, and percentage exits remain fixed relative to entry rather than adjusting with changing volatility. Sideways markets may generate false trend changes, while slippage can increase in volatile conditions.

Key ideas

• ATR-scaled bands provide a volatility-adjusted reference for trend changes.
• The code enters long when its trend state switches upward.
• Take-profit and stop-loss orders use percentages of the average entry price.
• A configurable date window limits eligible entries.
• The document lists backtest settings but gives no results, and only long entries are shown.

Tags

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