Trendilo and MACD Zero-Cross Strategy with ATR Exits

Summary

This strategy combines a 50-period simple moving average, called Trendilo in the document, with MACD zero-line crosses. It enters long when MACD crosses upward through zero while price is above the average, and short when MACD crosses downward while price is below it. After entry, stop and target distances are set using multiples of a 14-period ATR, with the listed defaults of 1.5 and 2 respectively.

The document presents the rules, parameter options, and a historical BTC/USDT futures test interval, but does not report outcomes or performance statistics. It characterizes the approach as intended to align short-term momentum with a broader trend and adjust exit distances for volatility. The stated limitations include whipsaws in ranging or reversing markets, moving-average lag, parameter sensitivity, and potentially frequent trading costs during volatile periods. Backtesting and further filtering are suggested, but no evidence is given that these changes improve results.

Key ideas

• Long and short entries require a MACD zero-line cross aligned with price relative to a simple moving average.
• ATR multiples determine stop-loss and take-profit distances after entry.
• The strategy combines a trend filter with a shorter-term momentum trigger.
• Ranging markets, rapid reversals, parameter sensitivity, and transaction costs are identified as risks.
• The document provides test settings but no backtest results.

Tags

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