Linear Regression Channel Entries with Heikin-Ashi Exits

Summary

This strategy combines a 30-period linear regression channel, price-move triggers, and Heikin-Ashi-based exits. The channel width is set to two standard deviations. A long setup follows a close below the lower band and a rise above 1.8% over three minutes, provided the two-hour rise is no greater than 5%. A short setup follows a close above the upper band and a decline of at least 0.2% over three minutes. The script also specifies 10% take profit and 5% stop loss levels, and uses candle-body crossings of the channel boundaries for exits.

The document provides parameter settings and backtest configuration for BTC/USDT futures over roughly a year, but reports no performance results. Its stated limitations include false signals in ranging markets, delayed reaction to reversals, and fixed risk levels that may not suit changing volatility. The source code's Heikin-Ashi values are calculated from chart-bar data, so the claimed three-minute exit timing depends on the chart timeframe.

Key ideas

• The channel uses a 30-period regression line with boundaries two standard deviations from it.
• Long entries require a lower-band breach followed by a short-term rise, subject to a two-hour move cap.
• Short entries follow an upper-band breach and a short-term price decline.
• The strategy combines boundary-crossing exits with fixed take-profit and stop-loss levels.
• The published material gives backtest settings but no evidence of profitability.

Tags

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