Tillson T3 Direction Changes for Trend-Following Entries

Summary

This strategy calculates the Tillson T3 from a price series based on the bar high, low, and close. It applies six successive exponential smoothing steps and combines the later smoothed values with coefficients controlled by a volume factor. A rising turn in T3 triggers a long entry, and a falling turn triggers a short entry. Despite the title’s reference to multiple moving-average crossovers, the described signal compares T3 with its own prior value rather than crossing separate averages.

The document lists a configurable T3 length and volume factor, and its published settings describe a one-month BTC/USDT futures backtest on hourly bars. No performance results are supplied. The discussion identifies whipsaws in sideways markets, lag at trend starts, trading costs from frequent signals, parameter sensitivity, and reliance on a single indicator as limitations. Suggested refinements include confirmation filters, dynamic stops, multiple timeframes, volatility-aware sizing, and market-state logic; these are recommendations, not tested improvements.

Key ideas

• The strategy derives Tillson T3 from six sequential EMA calculations and a volume factor.
• An upward turn in T3 signals a long entry, while a downward turn signals a short entry.
• The entry rule compares T3 with its previous value rather than crossing another moving average.
• The published settings describe a short BTC/USDT futures sample but provide no performance results.
• Sideways markets, indicator lag, trading costs, and parameter sensitivity are stated risks.

Tags

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