UT Bot ATR Trailing Stop for Trend-Following Signals

Summary

UT Bot v2 is a trend-following method that maintains a trailing stop at a configurable multiple of Average True Range from a selected price source. The stop ratchets upward while price remains above it and downward while price remains below it; a confirmed cross of price and stop marks a change in direction. In the strategy implementation, buy signals open long positions and sell signals open short positions, with an optional date range for backtesting.

The script also provides signal alerts and chart display options, while retaining the core trailing-stop approach. The description characterizes the tool as a volatility-adjusted trend and risk-management aid rather than a forecasting system. No performance statistics or market-specific validation are provided. As with other trend-following rules, the document cautions that sustained directional moves may suit the method better than ranging or quiet conditions, where stop crossings can produce repeated reversals.

Key ideas

• The stop distance is a configurable multiple of ATR.
• The stop trails price and changes direction when price crosses it on a confirmed bar.
• The strategy enters long on an upward cross and short on a downward cross.
• The method follows trends rather than forecasting turning points and may whipsaw in ranges.

Tags

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