STC, Moving Average, and ATR Trend-Following Strategy

Summary

This strategy combines the Schaff Trend Cycle (STC), a simple moving average, and Average True Range (ATR) to time entries and manage exits. STC changes in direction trigger potential trades; a price position relative to the moving average and the direction of the ATR trailing-stop signal act as filters. ATR also sets stop and profit distances. The listed defaults include a 200-period moving average, a five-period ATR, and distinct stop and target multipliers.

The document describes a short BTC/USDT futures backtest using four-hour bars, but provides no performance statistics to substantiate its claims of stable profitability. Its risks include lagging signals, false entries, and stops being triggered by short-term volatility. The source logic also differs from parts of the prose: STC signals are based on its slope changing, and ATR's role as a direction filter is implemented through a trailing-stop state. These details, along with the limited backtest period and lack of reported costs or results, constrain what can be concluded.

Key ideas

• STC slope changes provide the strategy's entry timing signals.
• A simple moving average and ATR trailing-stop state filter potential long and short entries.
• ATR sets stop and take-profit distances that scale with volatility.
• The published backtest settings cover BTC/USDT futures on four-hour bars, but no numerical results are reported.

Tags

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