LeManStop: Trend-Filtered Stop Levels from Candle Ranges

Summary

LeManStop is described as a trend-following indicator that plots stop-loss levels for long and short positions. It uses the difference between fast and slow moving averages of closing prices to select direction. When the fast average is above the slow average, the long-side stop is based on the previous open minus a coefficient times the period average of high minus open. When the fast average is below the slow average, the short-side stop is based on the previous open plus a coefficient times the period average of open minus low.

The indicator exposes six settings: the range period, stop-line coefficient, and the periods and methods for its fast and slow moving averages. The description provides formulas and variable definitions, but no trading rules for entries, performance evidence, or guidance on parameter selection. Its stop levels should therefore be understood as indicator calculations, not as a validated standalone strategy.

Key ideas

• The fast-versus-slow moving-average difference selects which stop calculation is active.
• The long-side stop uses an average of the distance from each candle’s open to its high.
• The short-side stop uses an average of the distance from each candle’s low to its open.
• The coefficient and averaging settings control the stop levels.
• The document provides formulas but no performance evidence or parameter-selection method.

Tags

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