Range Filter Breakouts with ATR-Based Profit Targets and Stops

Summary

This strategy uses a moving average and standard-deviation bands to identify directional breakouts. A close crossing above the upper band can trigger a long entry, while a close crossing below the lower band can trigger a short entry. Persistent trend-state conditions are used to avoid repeating entries while the same direction remains active.

Exits place a take-profit limit and stop-loss level around the average entry price, with both distances scaled by the current Average True Range and separate multipliers. The channel length, band multiplier, ATR period, and exit multipliers are configurable. The document explains the rules and includes code, but it reports no backtest results, transaction costs, or evidence of profitability. The listed settings are examples rather than validated optimal parameters, and the script's performance may vary across markets and timeframes.

Key ideas

• The upper and lower bands are formed from a simple moving average plus or minus a standard-deviation range.
• Crossovers above the upper band and below the lower band provide long and short entry signals.
• Trend-state variables gate entries to reduce repeated signals in an established direction.
• ATR-scaled limit and stop levels define exits relative to the average entry price.
• The document supplies no performance results, so the strategy requires independent evaluation.

Tags

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