OTT Trend Crossovers and Wavetrend Direction Filtering

Summary

The document presents a two-sided strategy built around OTT, an adaptive boundary indicator derived from a moving average and percentage offset. A move across the OTT boundary is intended to trigger a directional trade, while a return toward the moving average is described as an exit. Wavetrend is proposed as a trend filter that would permit trades only in the prevailing direction. The inputs allow a choice of moving average type and periods.

The supplied configuration is for a BTC/USDT futures backtest over roughly a year, but the document reports no returns or other test findings. The implementation does not match the full description: it enters long on an upward price crossover and closes that long on a downward crossover; it contains no short entry and does not calculate or apply Wavetrend. Thus the code does not demonstrate the claimed two-way, trend-filtered system. The text notes false reversals, parameter sensitivity, and stop failures as risks, and suggests volatility or volume filters and adaptive stops for further study.

Key ideas

• OTT boundaries are calculated from a selected moving average and a percentage offset.
• The written method uses boundary crossovers for entries and a return toward the average for exits.
• Wavetrend is described as a directional filter, but it is absent from the supplied implementation.
• The code implements long entries and closes, without the described short trades.
• A BTC/USDT futures backtest setup is listed without reported performance results.

Tags

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