PMax: Combining Moving Averages with ATR Trend Stops

Summary

Profit Maximizer (PMax) combines a selected moving average with ATR-based trailing stop levels to indicate trend direction. Its design draws on the moving average trend switching of MOST and the volatility-sensitive price detection of SuperTrend. The line follows a long or short stop: when the moving average crosses the prior stop boundary, the direction changes and the opposite stop becomes active.

The document describes two signal styles: trade when the moving average crosses PMax, or when price crosses PMax. ATR length and multiplier control the stop distance, while the moving average type and length affect responsiveness; it lists eight average types and suggests VAR for sideways conditions. A published backtest configuration identifies BTC/USDT futures and a limited 2022 period, but supplies no performance metrics in the text. Claims of fewer false signals and stronger results than the component indicators are therefore not substantiated here. The author also states that the indicator does not repaint, but provides no independent validation or broader market evidence.

Key ideas

• PMax pairs a moving average with ATR-scaled stop levels to track trend changes.
• The moving average crossing PMax can signal entries, and price crossings provide an alternate signal method.
• ATR length and multiplier set the stop distance, while average type and length affect signal sensitivity.
• The document gives a short BTC/USDT futures backtest window but no quantitative results to assess the performance claims.

Tags

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