Multi-Timeframe ATR Trailing Stops for Trend Following

Summary

This trend-following strategy calculates ATR-based trailing stop levels on the current chart and three higher timeframes. Each stop tracks a directional state as price crosses it. The stated method enters long when all four timeframes agree on a long signal and enters short when all agree on short. It closes a long when the combined state is no longer fully bullish, and applies the corresponding rule to shorts. The listed defaults include an ATR length of 14, a multiplier of 2, and higher timeframes of 120, 180, and 240 minutes.

The document explains the rationale as combining volatility-adjusted stops with timeframe agreement to reduce noise, but it provides no performance results. Its published backtest configuration uses BTC/USDT futures over about a year with daily strategy periods and hourly base data. The prose says a position closes when at least two timeframes disagree, while the source closes when the summed states reach zero or the opposite side, so the precise exit threshold deserves attention. Stop distance and timeframe selection are identified as sensitive choices; testing other instruments and settings is suggested, not evidenced.

Key ideas

• ATR sets a dynamic trailing stop independently on four timeframes.
• The stated entry rule requires all four timeframe signals to agree on direction.
• The source closes positions when the combined directional score reaches zero or turns against the position.
• ATR multiplier and timeframe choices affect stop distance and signal behavior.
• The document describes a BTC/USDT futures backtest setup but reports no results.

Tags

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