Hull Moving Average Trend Entries with Two-Stage Trailing Stops

Summary

This trend-following system combines short- and long-period Hull moving averages (HMAs) for directional entries. A crossover between the shorter averages is filtered by the relative position of longer averages, forming a trend regime. Once in a position, the method applies a hard loss limit until price moves favorably past a trigger threshold; after that, it tracks a trailing exit from the best price reached.

The document provides parameter examples and describes risks including whipsaws in ranging markets, sensitivity to settings, slippage, and HMA lag. It reports no backtest results or performance evidence. There is also an inconsistency between the prose, which names a 1000-period HMA, and the supplied code excerpt, which uses a 600-period average; the excerpt is incomplete, so its full behavior cannot be assessed. The proposed volume, volatility, and multi-timeframe filters are presented as possible extensions rather than tested improvements.

Key ideas

• HMA crossovers generate entries only when longer-period averages confirm the trend direction.
• A hard stop applies before a favorable price threshold activates trailing-stop logic.
• The trailing exit follows the best price reached and closes on a sufficiently large reversal.
• The method may produce repeated losses in range-bound markets and depends on its parameter choices.
• The description and code excerpt disagree on the longest HMA period, and no performance results are supplied.

Tags

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