Half Trend

Overview

Half-Trend is a trend-following, step-style baseline with an ATR-based channel. It climbs in uptrends using the highest recent lows and falls in downtrends using the lowest recent highs, flipping only when price + smoothed extremes confirm the change. You get a clean staircase baseline and symmetrical bands to trade breakouts, pullbacks, or trend filters.

Interpretation

• Trend filter: trade with the staircase direction; avoid counter-trend entries unless mean-reverting by design.

• Breakout entries: a close above Upper band in a rising baseline often signals momentum continuation; below Lower band in a falling baseline suggests downside continuation.

• Pullback entries: in an uptrend, touch/hold above the baseline or lower band can be an entry with tighter invalidation; inverse for shorts.

  • Volatility awareness: wider ATR ⇒ wider bands mean fewer false signals but slower reactions.

Indicator Triggers:

Cross Band

We want to place a long signal when price cross up the upper band.

Touch Band

We want to place a long signal when price touch down lower band

Band Distance

We want to place a long signal when half trend band is between 0.5 and 2% under the price

Trend Swap

We want to place a long signal when half trend swaps bullish.

Trend Status

We want to place a long signal when half trend status is bullish.

Strategy Ideas

• Trend-Follow: Enter long on close above Upper band when baseline is stepping up; stoploss on close below Baseline.

• Pullback-Buy: Enter long on touch down of Baseline/Lower band while trend is up, with stop under Lower band; symmetric for shorts.

Runbot Trading Tips

• Optimization: Let the AI Agent Optimizer tune Amplitude and Deviation across regimes; evaluate APR vs. max DD trade-off.

• Non-repainting: Baseline steps only forward; flips require dual confirmation (SMA + price vs prior high/low).

Remember, no single indicator should be used in isolation. Always consider the broader market context and employ sound risk management practices in your trading.