Trend Catcher: Range Efficiency and Moving-Average Direction

Summary

The Trend Catcher strategy gauges directional movement by dividing the high-to-low range over a lookback by the sum of each candle’s high-low length, then expressing the ratio as a percentage. A higher reading indicates that price traveled more directly across the range. When the measure crosses above a threshold, the slope of a simple moving average selects long or short direction. The described approach takes partial profit at a fixed level and places a fixed stop; the remaining position is closed when the moving average slope turns against it.

Parameters include a lookback, threshold, moving-average length, profit and stop percentages, and the fraction of the position managed by the fixed exit. A BTC-USDT futures backtest setup is listed for daily bars with hourly base data across about a year, but no performance outcomes are reported. Early entries can fail if a move fades, and fixed exits may not fit changing volatility. The source’s order management also merits careful inspection before relying on the description as a complete implementation.

Key ideas

• The range-efficiency measure compares the full price range with the sum of candle ranges over a lookback.
• A threshold crossing combined with moving-average slope determines the direction of entry.
• The strategy uses partial fixed exits and closes remaining exposure when the moving-average slope reverses.
• The supplied backtest configuration gives no results, and fixed risk levels may not adapt to market volatility.

Tags

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