Dual Hull Moving Average Momentum Breakout with ATR-Based Risk Controls

Summary

This strategy uses a short and long Hull moving average to define trend direction, then seeks breakouts confirmed by candle strength, price distance from the short average, volume, and price location. The described long setup also requires a short simple moving average above the long Hull average; short rules reverse the direction. RSI and MACD are presented as additional confirmation filters, although the document’s wording about MACD confirmation is not fully consistent with applying the same rule to both directions.

Stops are based on ATR, with target levels expressed as multiples of initial risk. The plan moves the stop to entry after a favorable move and takes profit at a later target. These are proposed rules, not evidence of results: no backtest statistics are provided. The document cautions that moving averages lag at reversals, low volatility may suppress signals, and ATR stops can become wide. It also notes dependence on technical indicators and the risk of parameter overfitting, recommending evaluation across instruments, timeframes, and market conditions.

Key ideas

• The short and long Hull moving averages establish the directional trend filter.
• Breakout entries combine candle behavior, distance from the short average, volume, and price position.
• ATR sets the initial stop, while risk multiples define a break-even trigger and a profit target.
• The document provides strategy rules but no measured backtest evidence.
• Lagging signals, quiet-market conditions, wide stops, and parameter overfitting are stated limitations.

Tags

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