ATR Trailing Stops with RSI-Filtered UT Bot Signals
Summary
This system combines an ATR-based trailing stop with an RSI direction filter and a crossover signal to trade trends. A buy requires price above the stop, an upward cross, and RSI above 50; a sell requires price below the stop, a downward cross, and RSI below 50. Signals can use a smoothed candle input, and exits are set as fixed percentage levels from the recorded entry price. The document also discusses choppy-market whipsaws, delayed reversals, sensitivity to settings, and the possibility that fixed exits cut off extended moves.
No performance evidence is reported. The parameters are described, but the source warrants caution: its requested alternate candle series is constructed from OHLC values with lookahead enabled, which may undermine the stated non-repainting claim. The exit orders are also conditional on price already reaching their limit levels, so the implementation deserves review before relying on backtest or live behavior. The document suggests volatility-adjusted sizing, additional timeframe filters, and adaptive thresholds as possible extensions; these remain proposals rather than tested improvements.
Key ideas
- The ATR trailing stop changes with volatility and supplies the system’s direction threshold.
- RSI above or below 50 filters long or short crossover entries.
- Fixed percentage exit levels may limit losses but can also close trends early.
- The document reports no strategy results and warns about whipsaws and parameter sensitivity.
- The alternate candle calculation and lookahead setting call the non-repainting claim into question.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.