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Dual ATR Trailing-Stop Signals with EMA Trend Filtering

Article Strategy library · Author: AlgoWayCo

Summary

The script describes separate ATR trailing-stop engines for long and short entries, with each direction using its own ATR length and sensitivity. A long signal occurs when price crosses above its long trail while above a long-term EMA; a short signal requires a cross below the short trail while below that EMA. Repeated entry signals can add positions, and exits are based on a sequence of closes moving in one direction relative to a reference bar count.

The published script also includes strategy alerts intended for external execution platforms. Its stated inputs include a long trend EMA, short and long ATR settings, and exit-sequence controls. These rules provide a configurable signal framework, but the supplied document is truncated before the alert configuration is complete and gives no backtest results or discussion of performance. Pyramiding and ATR-based signals can still expose users to losses, especially when price reverses or trades repeatedly around the trail; the EMA filter and sequence exits do not guarantee protection.

Key ideas

  • Separate ATR trailing-stop calculations generate long and short entry signals.
  • Long entries require price above the trend EMA, while short entries require price below it.
  • Exit conditions count consecutive price comparisons against a reference bar.
  • Repeated signals can pyramid positions, increasing exposure.
  • The excerpt includes webhook alert integration but is truncated and provides no performance results.

Tags

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