Optimized Trend Tracker: Trend Direction and Moving Average Cross Signals
Summary
The Optimized Trend Tracker (OTT) is a trend indicator that compares price with a responsive moving-average-based line. Price above OTT is interpreted as an upward trend, while price below it indicates a downward trend. The OTT percent controls the distance used in the calculation, and the period controls sensitivity: shorter settings respond more quickly, while longer settings filter smaller moves.
The document describes several signal conventions: trading according to price’s position relative to OTT, taking signals when a support moving average crosses OTT, or using OTT color changes and direction. It also exposes several moving-average choices, including simple, exponential, weighted, and other variants. Published settings use a one-hour BTC/USDT futures chart with a 15-minute base period over about a month; no results or evaluation are reported. The indicator’s responsiveness depends on its parameters, and the document does not establish that its signals are profitable or explain risk controls.
Key ideas
- OTT classifies trend direction by whether price is above or below its line.
- Shorter periods and smaller percentage settings make the indicator more responsive to price changes.
- Support-line crosses and OTT color or direction changes are presented as alternative signal methods.
- The indicator allows several moving-average calculation types.
- The published BTC/USDT futures settings include no performance results or risk-management assessment.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.