Long-Only Trend Signals from ATR, Ease of Movement, and Vortex

Summary

This long-only trend strategy combines volatility, price-volume behavior, and directional movement. It compares a 10-period ATR with a five-period EMA of ATR, treats positive 10-period Ease of Movement as bullish, and uses a 10-period Vortex calculation to classify direction. A long position is opened when ATR is above its smoothed value, EOM is positive, and the average of the Vortex measures exceeds one; the opposite conditions close the position. The accompanying explanation describes these indicators as filters for different aspects of the market.

The published settings describe a daily BTC/USDT futures backtest spanning about a year, but no return, drawdown, or other results are supplied. The document itself flags limited evidence and weak position-risk controls. A long-only approach also cannot hedge falling markets and may leave capital tied up during sideways periods. It suggests testing parameters, adding stops, and adapting position size to volatility, but does not demonstrate that these changes improve outcomes.

Key ideas

• A long entry requires ATR above its EMA, positive EOM, and an average Vortex reading above one.
• The exit condition uses the opposite ATR, EOM, and Vortex readings.
• The three indicators are intended to combine volatility, price-volume behavior, and trend information.
• The published daily BTC/USDT futures test has no reported performance statistics, and the strategy lacks explicit position-risk controls.

Tags

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