Moving Average Trend Reversals with ATR Trailing Stops

Summary

This strategy uses a configurable moving average as an entry signal and trend baseline. Its described setup goes long when price crosses above a Hull moving average and short when price crosses below; a McGinley or other selected baseline can confirm direction. A reversal in the entry indicator can close an open position. The trailing stop is derived from ATR and smoothed price series, and is adjusted as the market moves to protect gains. Position size is calculated using account equity and a stated risk percentage.

The document lists selectable moving-average types and describes settings for long and short trailing behavior. It reports no trading results. Its published backtest configuration uses BTC/USDT futures on Binance over about a month, with hourly strategy bars and 15-minute base data. The risks include whipsaws in ranging markets, lag during fast moves, false breakouts, and parameter sensitivity. The source settings also leave some described features, such as take profit, disabled, so the method’s performance cannot be inferred from the narrative alone.

Key ideas

• A Hull moving average crossover supplies the described directional entry signal, with a baseline available to confirm direction.
• An ATR-based trailing stop adjusts as prices move and can be smoothed separately for long and short positions.
• Position size is tied to account equity and a specified risk fraction.
• Ranging markets, sharp moves, and false breakouts can lead to stop-outs or losses.
• The document provides a backtest configuration but no performance evidence, and some optional features are disabled in the source settings.

Tags

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