Range Filter and Smoothed Heikin-Ashi Trend Agreement with ATR Exits
Summary
This strategy seeks entries when a range filter and smoothed Heikin-Ashi candles agree on direction, optionally requiring confirmation from Heikin-Ashi direction on a higher timeframe. A signal is taken when the combined state turns bullish or bearish, provided the warm-up and post-exit cooldown conditions are met. A Stochastic Momentum Index filter can block entries when price appears extended, aiming to reduce chasing rather than establish direction.
Position size is calculated from a percentage of equity and the initial stop distance based on ATR, then limited by a maximum leverage setting. The exit uses an ATR trailing stop, with an optional take-profit multiple and an option to close when the range filter reverses. The script includes transaction cost assumptions and displays trade statistics, but the supplied material gives no actual performance results or independent validation. Results may depend on symbol, timeframe, parameter choices, and execution assumptions; the code describes a configurable framework rather than evidence of a profitable edge.
Key ideas
- Entries require agreement between the range filter and smoothed Heikin-Ashi direction.
- A higher-timeframe Heikin-Ashi check can be enabled to add directional confirmation.
- The SMI filter can screen out entries after moves reach configured extremes.
- ATR-based sizing, a leverage cap, and a trailing stop define position risk and exits.
- Cooldowns and optional exits on range-filter reversals govern trade frequency and management.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.