Chandelier Exit Trend Following with a 200-Period EMA Filter

Summary

This trend-following system combines Chandelier Exit signals with a 200-period EMA filter. The Chandelier Exit sets trailing stop levels from recent price extremes adjusted by an ATR multiple. Long entries require a buy signal with price above the EMA; short entries require a sell signal with price below it. Reversal signals close the opposing position. The stated defaults include an ATR period of 22 and multiplier of 3. The published settings describe a BTC_USDT futures backtest, but the document gives no performance metrics or empirical comparison.

The EMA filter is intended to align trades with the broader trend, while the ATR-based stops adapt to volatility. The source also includes bar-confirmation behavior and entry stop prices offset by half an ATR. The write-up warns of false signals in sideways markets, sensitivity to parameter choices, slippage, fees, and sharp reversals that may exceed ordinary stops. Proposed additions such as volume checks, multiple timeframes, or alternative position sizing are suggestions, not tested findings.

Key ideas

• The system combines Chandelier Exit reversals with a 200-period EMA trend filter.
• Long trades require price above the EMA, while short trades require price below it.
• The stated Chandelier Exit defaults are an ATR period of 22 and multiplier of 3.
• Reversal signals close positions in the opposite direction, and entries use stop prices offset by half an ATR.
• The document describes backtest settings but reports no strategy performance results.

Tags

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