Hull Moving Average and ATR Trend-Following Strategy

Summary

This strategy pairs the slope of a Hull moving average with average true range (ATR) to generate trend-following entries. It treats a rising Hull difference as bullish and a falling difference as bearish, then also checks price direction over a lookback period and compares ATR with price. The described setup uses the Hull and ATR lengths as adjustable inputs and offers several ATR smoothing methods.

Positions close when the Hull-based direction changes. The document explains the intended role of the indicators and suggests tuning their periods, smoothing, entry filters, and stops. It identifies false breakouts, unsuitable parameters, and sharp market moves as risks. The published description does not provide performance evidence, and its entry rules are unusual: ATR is compared directly with price, while the prose describes volatility expansion. That difference makes the actual rule set worth checking before evaluating or deploying it.

Key ideas

• A rising Hull moving average difference signals a bullish bias, while a falling difference signals a bearish bias.
• The entry rules also compare ATR with price and check price direction over a lookback period.
• The strategy closes positions when the Hull-based direction reverses.
• False breakouts, parameter sensitivity, and sharp price moves are identified as risks.
• The document offers no performance results to establish whether the strategy is effective.

Tags

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