Intraday Trend Entries After a Threshold of Average Daily Range

Summary

This expert advisor enters in the direction of the prevailing trend after price has traversed a specified share of its average daily range. It estimates that range with a 20-bar ATR and uses an 80% threshold by default. The stated stop is the daily high for a short trade or the daily low for a long trade; the profit target is the untraversed portion of the average range, expressed in pips. Positions are closed automatically at midnight.

The document characterizes the approach as intraday and says it works better on candles with long bodies than on candles with long tails. It does not define how the trend is identified, specify the instrument or chart timeframe, or provide test data, costs, or performance measures. The described settings therefore outline an entry and exit framework, but leave important implementation and validation details unresolved.

Key ideas

• The strategy enters with the trend after price exceeds a fraction of its average daily range.
• Average daily range is estimated using a 20-bar ATR, with an 80% threshold by default.
• Stops are placed at the daily extreme opposite the trade direction, and the target is the remaining range.
• Open positions are closed at midnight because the method is intended for intraday use.
• The author reports weaker performance on long-tail candles but provides no supporting test results.

Tags

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