MACD and Bollinger Band Breakouts with ATR-Based Exits

Summary

The document outlines a cryptocurrency futures system that combines MACD direction signals with Bollinger Band breakouts. It proposes opening a long position when MACD forms a bullish crossover with its fast line above zero and price breaks the upper band, and opening a short position on a bearish crossover below zero with a break beneath the lower band. Position size is described as dynamic, with risk controlled by a per-trade loss limit.

For exits, the strategy tracks the favorable price extreme and uses an ATR-based retracement threshold. The surrounding program periodically retrieves hourly candles, open orders, and position information, then sends these updates through an event engine to the strategy. The document gives no backtest, trading results, parameter rationale, or detailed rules for calculating size and stop thresholds, so the proposal is a high-level strategy sketch rather than demonstrated evidence of an edge.

Key ideas

• The long setup combines a bullish MACD crossover above zero with an upper Bollinger Band breakout.
• The short setup combines a bearish MACD crossover below zero with a lower Bollinger Band break.
• Position sizing is intended to adjust dynamically around a per-trade loss limit.
• Exits are based on a retracement from the favorable price extreme measured using ATR.
• The document supplies no empirical results or complete parameter specification.

Tags

Cited by

• Hypotheses FIL Aggressor-Burst Continuation, Long-Short (FILUSDT.BINANCE USD-M 1H: follow a >=4-sigma, >=5x-volume, extreme-close-location hour for a fixed 4 hours, flat ~98% of the time)

From a private course collection; the original is not published.