ATR Trailing-Stop Trend Following with Heikin-Ashi Signals

Summary

This long-only strategy derives a trailing stop from average true range and a selected price series. The source can be manually calculated Heikin-Ashi values, Heikin-Ashi data requested from the platform, or regular candles. A buy signal occurs when the selected series crosses above the trailing stop; a sell signal occurs on the reverse cross. The ATR period and sensitivity multiplier control the stop’s responsiveness.

An optional stop loss is calculated from the recorded entry price using either a percentage or fixed price distance, and its hit check uses the real candle low. The document emphasizes running the script on regular charts and executing orders at market prices rather than treating synthetic Heikin-Ashi prices as fills. It provides implementation guidance but no performance statistics. The script is long-only, and the stop-loss setting is disabled by default, so its protective behavior depends on configuration; the described rules also do not establish that the trend signals are profitable.

Key ideas

• The strategy uses price crossing an ATR-based trailing stop to signal long entries and exits.
• The price input can be manually computed Heikin-Ashi, platform-derived Heikin-Ashi, or regular OHLC data.
• An optional fixed-distance or percentage stop loss is checked against real candle prices.
• The document advises using regular charts and real market prices for order execution.
• The strategy is long-only and supplies no backtest evidence or profitability results.

Tags

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