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Trend Switching with Linear Regression Slope and Adaptive Averages

Article Strategy library · Author: palitoj_endthen
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Summary

This TradingView strategy is presented as a trend-cycle switch built around the slope of a linear regression calculated from a selectable price source. Its stated premise is that stronger directional moves produce slope values farther from the range associated with weak or unclear trends. A threshold is intended to distinguish those conditions, with MESA adaptive moving averages included as plotted indicators and a percentage stop loss available as an input. The script also permits long-only, short-only, or two-way trading and defines a backtest window.

The supplied excerpt is incomplete: it ends during the slope calculations, before the full signal, order, and exit rules are visible. It therefore does not establish exactly how slope thresholds or adaptive averages drive trades, and it includes no strategy report or measured results. The visible settings mention fees, slippage, leverage-related margin, and no pyramiding, but these assumptions alone do not demonstrate profitability or robustness.

Key ideas

  • The strategy uses linear regression slope as a measure of trend direction and strength.
  • A threshold is intended to separate strong directional conditions from unclear or ranging conditions.
  • The script exposes MESA adaptive average displays, trading direction, stop loss, and backtest-window settings.
  • The excerpt omits the complete entry and exit logic, so the exact trading rules cannot be confirmed.
  • The document provides no performance results to establish whether the approach is effective.

Tags

Trend followingTechnical indicatorsBacktestingRisk management

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