Momentum and Range Acceleration Systems for Trend Continuation

Summary

This document presents two long-only trading systems built around the idea that price moves may continue when short-term momentum and average range accelerate relative to longer-term measures, while price direction agrees with a rising short moving average. One system measures acceleration as a difference between short- and long-term values; the other uses ratios to form coefficients. Both also require an up bar, and exit rules combine a minimum holding period, a longer moving average condition, and a fixed profit target.

The examples are optimized for EUR/USD on a 15-minute chart, with parameters drawn from a stated historical optimization period. The author says the approach may be adapted to other markets, but stresses that parameters require regular optimization and that short-side versions need separate development. The examples are not complete trading systems: they omit risk management and exception handling, and the backtest is offered only to illustrate the premise’s risk-reward and hit rate. No detailed performance statistics are provided, so the described continuation premise should not be treated as independently validated.

Key ideas

• The systems seek continuation when short-term momentum and price range accelerate against longer-term averages.
• One system measures acceleration with differences, while the other uses relative coefficients.
• A rising short moving average and an up bar confirm direction for long entries.
• Exits use a minimum holding period, a longer moving average condition, and a fixed target.
• The examples lack risk controls, require optimization, and provide no detailed validation evidence.

Tags

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