Multi-Timeframe ATR Trend Following with Daily Filtering
Summary
The strategy combines ATR trailing stops across several chart horizons for long-only cryptocurrency trend trading. A four-hour price crossing above its ATR stop can trigger an entry when the daily close is above a separate daily ATR stop. A one-hour cross below its stop exits the position. The published defaults use an ATR period of 10 and a multiplier of 4, and the rules allow up to two open entries through pyramiding. The daily filter is intended to avoid entries against the broader trend.
The document reports backtest claims, including false-breakout filtering, return improvement from adding positions, and drawdown control, but provides no underlying trade record or methodology sufficient to assess them. The sample settings specify ETH/USDT futures over January through August 2025, so results would not establish performance in other periods or markets. The article itself notes that choppy conditions can cause repeated losses and that long-only exposure may fare poorly in bear or sideways markets. It also emphasizes that historical results do not guarantee future performance.
Key ideas
- Four-hour ATR stop breakouts trigger entries only when the daily ATR trend filter passes.
- A one-hour ATR stop cross below the trailing level closes the long position.
- Pyramiding is capped at two entries, subject to the daily filter remaining valid.
- The stated backtest claims lack enough methodological detail to independently assess them.
- Choppy, bearish, or sideways markets can produce losses or weak performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.