True-Range WMA Trend Signals with Conditional Pyramid Entries

Summary

This strategy separates true range into upward and downward components according to whether the close rose or fell. It computes weighted moving averages of those components over fast and slow periods, then smooths their difference to form a trend indicator. The supplied code marks a long setup when the indicator is below zero but has risen for consecutive bars; a short setup is the mirrored condition above zero while falling. This differs from the prose's simplified description of buying and selling on zero-line crossings.

The strategy allows up to five staged long entries, with later orders sized progressively larger, but adds those positions only when unrealized percentage performance is below a configured threshold. It closes all positions on a short setup only when aggregate open profit is positive. Published settings identify a BTC/USDT futures test period but provide no results. Sudden reversals and parameter choices remain risks; the increasing position sizes and conditional exits mean the advertised stop-loss characterization should not be read as a guaranteed loss limit.

Key ideas

• The indicator smooths the difference between fast and slow weighted averages of upward and downward true range.
• The source generates setups from indicator direction while it remains on one side of zero, rather than directly on zero-line crossings.
• Up to five long entries can be added, with later entries increasing in size when open performance meets the configured condition.
• All positions close on a qualifying short setup only when aggregate open profit is positive.
• No performance results are reported, and the position logic does not guarantee a fixed maximum loss.

Tags

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