Gaussian Channel Strategy with Multi-Indicator Filters and Split Exits

Summary

This strategy combines a Gaussian channel, a long-period Kijun-Sen, a volume-adjusted price indicator, and ATR-based risk controls to filter entries. The stated settings use a four-pole filter over 144 periods, a 130-period Kijun-Sen, and an 11-period ATR multiplied by 4.5 for stop distance. Long and short signals require agreement among the filters, though the supplied excerpt does not fully specify every entry condition.

Positions are divided between a 75% leg with a fixed 3.5-to-1 risk-reward target and a 25% leg managed by a trailing stop. The article also describes risking 3% of account capital per trade and adding a 10% profit exit. It provides parameter settings and illustrative strategy code, but no performance results. It warns that the layered filters can delay entries, parameters may need instrument-specific tuning, and the trend-oriented design may struggle in ranging markets. Historical backtesting is recommended before application.

Key ideas

• A Gaussian filter and Kijun-Sen line are used to identify and confirm trend direction.
• VAPI provides a volume and price condition for supporting long or short signals.
• ATR sets a volatility-adjusted stop distance and informs position sizing.
• The position is split between a fixed-target leg and a trailing-stop leg.
• The trend-following approach may lag or underperform in ranging markets.

Tags

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