Hull Moving Average Trend Entries with ATR Trailing Stops

Summary

This trend strategy uses a Hull Moving Average (HMA) as its main entry indicator. The document describes long entries when price breaks above the HMA and short entries when it breaks below, with optional baseline and confirmation indicators intended to filter trades. After entry, an ATR-based stop moves with the trend, and the code sizes positions using a risk fraction of equity. The source exposes several choices of moving-average type and supports long-only, short-only, or two-sided modes.

The approach aims to capture sustained moves while allowing a trailing stop to adjust as prices change. Its stated weakness is performance in sideways markets, where trend signals may generate false entries and stops; multiple filters can also disagree. The document suggests volatility filters, parameter testing, and position adjustments as possible refinements. Published settings show a one-hour BTC/USDT futures backtest over about a month, but no performance results are included. The source is also truncated, so the complete entry and trailing-stop conditions cannot be assessed from the supplied material.

Key ideas

• The HMA is presented as the main indicator for identifying trend direction.
• Optional baseline and confirmation indicators can filter entry signals.
• An ATR-based stop trails positions, while position size is linked to a stated equity risk fraction.
• Trend signals can perform poorly in sideways markets, and indicator filters may conflict.
• The supplied source is truncated and provides no backtest performance statistics.

Tags

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