ATR Trailing Stop

ATR Trailing Stop is a trend-following strategy built around one core idea: instead of exiting on a fixed price distance or a second, independent signal, it holds the position for as long as price stays above a stop that continuously trails upward, sized off the instrument's own volatility (ATR) rather than an arbitrary fixed distance. A volatile stock gets a wider stop; a calm one gets a tighter one.

Two variants are documented here: a base version (a simple level-check entry/exit) and an advanced version (a crossover-event entry/exit with an added trend-strength filter).

When it works best

Base variant: works best as a way to ride a trend for as long as it lasts, on names volatile enough that a fixed-distance stop would either be too tight (stopping out on ordinary noise) or too loose (giving back too much of a move if left unmanaged). Since the only way out is Close dropping back under the entry filter or the trailing stop being touched, this strategy tends to stay in a position through minor pullbacks and only exits on a genuine reversal or a sharp single-candle move that breaches the stop.

Advanced variant: works best when trades should be reserved for genuinely strong, freshly-forming trends rather than any moment price happens to be above its average - the ADX filter means it sits out choppy or weakly-trending conditions entirely, and the crossover-event entry avoids piling into a move that's already run for a while. The tradeoff is fewer trades overall and occasionally missing a move that never produces a clean crossover (e.g. a slow grind where price stays just above the SMA without a decisive cross).