HMA Crossover Trend Trading with Curvature and ATR Risk Controls
Summary
This trend-following system enters when a fast Hull moving average crosses a slower one and a second-change measure of the fast average confirms acceleration in the same direction. It uses ATR to set stop distances and calculate position size from a chosen fraction of account equity, with a trailing stop intended to follow favorable price moves. The described rules support long and short entries and also mention closing positions when the crossover reverses.
The document gives parameter settings and a proposed daily ETH/USDT futures backtest period, but reports no performance results, so it provides no evidence that the strategy is profitable. Its own caveats include whipsaws in sideways markets, sensitivity to the acceleration threshold and other parameters, and exposure to slippage, poor liquidity, and sudden reversals. It suggests testing across market conditions and considering longer-term trend, volume, and adaptive-threshold filters. The claimed fixed risk per trade depends on execution and position sizing behaving as intended; ATR stops cannot guarantee a fixed realized loss.
Key ideas
- Fast and slow Hull moving average crossovers define potential trend entries.
- A second-change measure of the fast average filters entries for directional acceleration.
- ATR-based stop distances are used to size positions and trail exits.
- Sideways markets, parameter choices, slippage, and abrupt reversals can undermine results.
- The described backtest settings contain no reported performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.