WaveTrend Crossover Trend Following with Multi-Timeframe Filters and Trailing Stops

Summary

This strategy uses WaveTrend crossovers on a 15-minute chart for entries and a higher timeframe for directional confirmation. A long signal requires an upward crossover with the fast WaveTrend value above a stated lower threshold and an upward 30-minute trend; a short signal uses a downward crossover, an upper threshold, and a downward 30-minute trend. The document’s overview also describes a 240-minute macro filter, although its detailed entry rules and source excerpt emphasize 30-minute confirmation, creating an inconsistency in the timeframe description.

Exits combine a percentage-based initial stop with profit-triggered trailing logic and a maximum-gain drawdown stop. The text explains the indicator calculation and discusses sensitivity to parameters, false signals in ranging or volatile markets, liquidity, and reliance on higher timeframe data. It supplies no backtest results, so its claims about effectiveness are not demonstrated. The listed rules and code excerpt offer a framework to investigate, but parameter choices and execution assumptions would need evaluation for the intended instrument.

Key ideas

• The strategy uses lower-timeframe WaveTrend crossovers for entries and higher-timeframe direction as confirmation.
• Long and short conditions include WaveTrend value thresholds as well as crossover direction.
• A percentage-based initial stop can give way to profit-triggered trailing and maximum-gain drawdown protection.
• The overview mentions a 240-minute filter, while the detailed rules specify 30-minute confirmation, leaving timeframe use unclear.
• The document discusses parameter sensitivity and market-condition risks but does not report backtest performance.

Tags

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