HiLo Breakouts Filtered by ADX and Directional Indicators

Summary

This bidirectional trend strategy uses the midpoint of the recent highest high and lowest low as a HiLo Activator level. A close crossing above that level can trigger a long, while a cross below can trigger a short. The signal is accepted only when ADX exceeds a threshold and the corresponding directional indicator, DI+ for longs or DI− for shorts, also clears its threshold. The document describes adjustable lookback and filter settings and suggests tuning them to balance signal frequency against noise.

The source and published configuration use BTC/USDT futures with daily strategy bars over roughly one year, but no performance figures are reported. The document identifies whipsaws from temporary reversals and the possibility that strict ADX and DI requirements delay or exclude early trend entries. It suggests adding stop losses, though the supplied entry and reversal logic does not implement explicit protective stops. Threshold behavior may vary across instruments and market conditions, so the suggested parameter differences are guidance rather than demonstrated results.

Key ideas

• The HiLo Activator midpoint provides the price level for directional breakout signals.
• ADX filters for trend strength, while DI+ or DI− confirms directional pressure.
• Higher filter thresholds can reduce signals but may also delay entry or miss opportunities.
• Temporary reversals can create whipsaws, and the source does not implement explicit stop losses.
• Published test settings contain no performance statistics.

Tags

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