Multi-Indicator Trend Trading with Pyramiding and ATR-Based Risk Controls

Summary

This strategy combines MACD crossovers, OBV relative to its moving average, RSI, and volume relative to its moving average to identify long and short entries. It also calculates HMA and ATR, then describes ATR-based stop, target, and trailing-stop distances. Position size is calculated from account equity, a per-trade risk setting, and ATR. The example allows up to three pyramid positions, with a stated pyramid factor of 0.5.

The document provides default indicator and risk parameters and backtest settings for BTC/USDT futures over the stated April 2023–April 2024 period, but no performance results. It warns about parameter sensitivity, changing market conditions, extreme events, and overfitting. The included code does not clearly match all of the described mechanics: the calculated stop and target levels are not used as exits, and the HMA is calculated but does not appear in the entry filters. Pyramiding and trailing-exit behavior therefore warrant careful validation before interpreting the strategy as implemented.

Key ideas

• Long entries require a bullish MACD crossover, OBV above its moving average, RSI above 50, and volume above its moving average; short entries use the opposite conditions.
• The example derives initial position size from equity, a 1% risk setting, and ATR-based stop distance.
• The strategy describes adding positions as a trend continues and caps pyramid positions at three.
• ATR is used to specify stop, target, and trailing-stop distances in the strategy description.
• The code does not use its calculated initial stop and target values as exits, and HMA does not filter entries.

Tags

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