NRTR: Percentage-Based Trailing Stops and Trend Reversals

Summary

Nick Rypock Trailing Reverse (NRTR) is a trend-following indicator that tracks a stop a fixed percentage away from the extreme price reached during the current trend. In an uptrend, it raises the stop as new closing highs occur; a close at or below that threshold switches the state to a downtrend. In a downtrend, it lowers the reference point as new closing lows occur, and a close above the corresponding threshold reverses the state. The method excludes extremes from the prior trend and uses a percentage adjustment rather than an ATR calculation.

The included example uses a 2% correction setting and shows buy and sell labels at direction changes; its logic also submits long or short entries on those changes. A BTC_USDT futures backtest configuration is listed, but the document supplies no performance metrics or analysis of results. The percentage distance remains tied to price rather than adapting directly to volatility, so its suitability may vary across instruments and changing market conditions.

Key ideas

• NRTR places its trailing threshold a fixed percentage from the current trend's extreme closing price.
• New highs raise the uptrend reference point, while new lows lower the downtrend reference point.
• Crossing the threshold changes the indicator's trend state and produces a reversal signal.
• The example uses a 2% correction setting and enters positions when the direction changes.
• The supplied backtest configuration contains no reported performance results.

Tags

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