Previous-Day Price Levels with ATR Entries and Exits

Summary

This strategy sets long and short price thresholds around the previous day’s close using the Average True Range (ATR). A move beyond the close by 0.8 ATR triggers an entry, with the description specifying ten lots. It defines stop and profit levels using ATR offsets and the prior day’s low for longs or high for shorts. The stated ATR lookback is 14 periods, and the approach is presented as a way to scale levels to market volatility.

The document recommends stops and profit targets but does not provide measured results. Its published backtest settings specify BTC-USDT futures on Binance over December 2023, using a one-hour period with 15-minute base data. The source calls the implementation a demo and says it is not suitable for live automated trading. The written stop formulas place both long and short stops on the same side of the prior close as their corresponding entries, so the actual risk behavior may differ from a conventional protective stop. Previous-day prices also cannot establish the next day’s direction, and reversals or intraday noise can trigger losses.

Key ideas

• Entry thresholds are placed 0.8 ATR above or below the previous day’s close.
• The stated ATR lookback is 14 periods, and the described entry size is ten lots.
• Profit targets reference the previous day’s low for longs and high for shorts, adjusted by ATR.
• The document warns that prior-day prices do not predict future direction and that ATR levels may trigger frequent stops.
• The source labels the strategy a demonstration and not suitable for live automated trading.

Tags

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