ZLSMA Trend Entries with Chandelier Exit Signals

Summary

The document describes a trend-following system that combines a smoothed moving-average line with Chandelier-style stop calculations based on prior-bar prices and ATR. Its overview calls the average SESMA, but the included implementation uses a zero-lag least-squares moving average (ZLSMA). Entries require a Chandelier direction change and a price crossover of the ZLSMA; exits occur when price crosses back over that line. The script also tracks open trade direction and can defer an opposing entry until the current position exits.

The published settings include an ATR period and multiplier, a ZLSMA length, and options for labels and extrema. A BTC/USDT futures backtest configuration is provided for a short period, but no performance results are reported. The overview claims the trailing mechanism can adapt to volatility and help protect profits, yet the supplied code’s trade exits are based on ZLSMA crossovers rather than direct stop-line triggers. The text recommends tuning average and ATR parameters and cautions that stop signals can exit early around reversals; the brief configuration does not establish robustness across markets.

Key ideas

• Entries combine a Chandelier direction change with a price crossover of the ZLSMA.
• The code calculates Chandelier-style levels using prior-bar prices and an ATR adjustment.
• Open-trade state logic prevents some conflicting signals and can queue an opposing entry.
• The overview describes SESMA, while the implementation calculates ZLSMA, so the naming and method do not fully match.
• The document gives a short BTC/USDT futures backtest setup but reports no performance evidence.

Tags

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