# 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**.<br>

### 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:&#x20;

<figure><img src="/files/8XUycfS3l8bAajize3Dq" alt="" width="380"><figcaption></figcaption></figure>

### Cross Band

<figure><img src="/files/9HHKJ36UqenmLarfpwlo" alt="" width="563"><figcaption><p>We want to place a long signal when price cross up the upper band.</p></figcaption></figure>

### Touch Band

<figure><img src="/files/eBW95x3z9IVpPnok1IBz" alt="We want to place a long signal when price touch down lower band" width="563"><figcaption><p>We want to place a long signal when price touch down lower band</p></figcaption></figure>

### Band Distance

<figure><img src="/files/7PPi8o7O6YsMI4NX2wgh" alt="" width="563"><figcaption><p>We want to place a long signal when half trend band is between 0.5 and 2% under the price</p></figcaption></figure>

### Trend Swap

<figure><img src="/files/ssruOTkZs9sl1428A9FH" alt="" width="563"><figcaption><p>We want to place a long signal when half trend swaps bullish.</p></figcaption></figure>

### Trend Status

<figure><img src="/files/P1z0biN8ehGZegfgmtCL" alt="" width="563"><figcaption><p>We want to place a long signal when half trend status is bullish.</p></figcaption></figure>

### Strategy Ideas

* **Trend-Follow:**\
  \&#xNAN;*Enter long* on **close above Upper band** when baseline is stepping up; stoploss on **close below Baseline**.
* **Pullback-Buy:**\
  \&#xNAN;*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).

<br>

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


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