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TEMA and Regression Trend Signals with ATR-Based Stops

Article Strategy library · Author: ChaoZhang

Summary

This strategy compares two configurable trend lines, with triple exponential moving average (TEMA) and least-squares linear regression as the stated combination. A crossover of the shorter line above the longer line signals a potential long entry; the reverse indicates a downtrend and can trigger an exit or short trade, depending on the selected trade mode. The source also includes an ATR-derived trailing stop, a percentage stop for long positions, and two staged long take-profit orders.

The published parameters include trend-line lengths, ATR period and multiplier, stop level, and partial profit targets. A BTC/USDT futures backtest interval is provided, but the document reports no returns, drawdowns, or other performance evidence. Although the prose presents the stop as adaptive to volatility, the source's trailing-stop logic and its use of the highest recent stop value mean implementation details matter; the settings and signals require product-specific testing. The text's claim of accurate trend identification is not supported by comparative results.

Key ideas

  • The strategy uses crossovers between configurable trend lines to identify potential trend changes.
  • Its stated setup combines a shorter TEMA with a longer regression line.
  • The source includes an ATR-based trailing stop, a percentage stop, and staged long profit targets.
  • The document gives a BTC/USDT futures test period but no performance results.
  • Indicator behavior and stop logic should be checked for the chosen parameters and instrument.

Tags

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