T3 Trend Breakouts with TDFI Confirmation and Combined Stops
Summary
This BTC futures strategy uses a T3 moving average as a broad trend filter, a price-range breakout signal, and a momentum confirmation. A long signal occurs when price crosses above a threshold based on the recent high and average high-low range, TDFI is above its signal average, and price is above the T3 line. The short conditions reverse these tests. The source then sets protective levels using recent lows or highs and combines them with a trailing stop that activates after price moves favorably by a configured amount. Limit exits use a fixed risk-to-reward multiple and can close only part of a position.
The document explains the components and lists parameter inputs, alongside a BTC_USDT futures backtest configuration from 2019 to 2024, but reports no performance statistics or results. It cautions that confirmation filters may delay entries, ranging markets can produce false signals, and volatility may trigger trailing stops early. Its recommendations for volatility adjustment and market regime filters are proposals, not evaluated improvements.
Key ideas
- The T3 line filters breakout signals by the broader price trend.
- A trade signal combines a recent range threshold with TDFI confirmation and the T3 trend condition.
- The exit design combines recent extreme based stops, an activated trailing stop, and a fixed risk-to-reward limit.
- Partial exits allow the strategy to close a configurable fraction of a position at the target.
- The published backtest setup has no accompanying performance results, so it does not establish effectiveness.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.