Standard Deviation Range Breakouts with ATR-Based Exits

Summary

This strategy builds upper and lower price bands around a simple moving average, with band width determined by a multiple of recent standard deviation. A close crossing above the upper band triggers a potential long entry; a cross below the lower band triggers a potential short entry. The code also tracks trend states to restrict repeat signals. The documented defaults set the band length and multiplier, alongside a separate ATR lookback and multipliers for exits.

Profit targets and stop levels are placed at distances from the average entry price proportional to ATR, with signs reversed for short positions. The write-up explains that this makes exit distances responsive to current volatility and presents the bands and levels visually. It does not report a backtest period, trade statistics, or evidence that the rules are profitable. The displayed script is an implementation example, so signal-state behavior, order handling, and the stability of chosen parameters would need examination before drawing conclusions about its results in any market.

Key ideas

• The bands use a moving average plus and minus a standard deviation-based width.
• Crosses above or below the bands provide candidate long and short signals.
• ATR multipliers determine the stop and target distances from the entry price.
• The document explains the rules but gives no performance results or validation.

Tags

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