AdaptiveTrendChannel

AdaptiveTrendChannel is a built-in TypeScript strategy from @tradejs/strategy-adaptive-trend-channel.

It replays candles through an adaptive channel engine, watches for bullish/bearish channel flips, and sizes entries from the distance to the channel boundary used as the stop.

Visual overview

The illustrations are schematic, not market data. Exact thresholds, confirmation rules, and risk parameters come from the active strategy config.

Entry Logic

1. Builds runtime state with createAdaptiveTrendChannelEngine({ initialCandles, config }).
2. On each candle, reads runtimeState.signal and runtimeState.snapshot.
3. Skips until a channel flip passes the configured bar confirmation; optional price acceptance also requires the close beyond the recent peak or trough.
4. Selects LONG or SHORT side config from the signal direction.
5. Applies context filters through getAdaptiveTrendChannelFilterSkipCode(...).
6. Uses the signal floor/roof as stop-loss:
   • long stop: signal.floor
   • short stop: signal.roof
7. Computes target from ADAPTIVE_TREND_CHANNEL_TARGET_R_MULT.
8. Sizes quantity from MAX_LOSS_VALUE / riskDistance, using the RISK_FEE_RATE, RISK_SLIPPAGE_BPS, and RISK_MARKET_IMPACT_BPS estimates.
9. Returns entry with channel figures and adaptiveTrendChannelContext.

Entry codes:

• ADAPTIVE_TREND_CHANNEL_BULLISH_FLIP
• ADAPTIVE_TREND_CHANNEL_BEARISH_FLIP

Exits

When a position exists:

• ADAPTIVE_TREND_CHANNEL_BREAK_EXIT when ADAPTIVE_TREND_CHANNEL_EXIT_ON_CHANNEL_BREAK=true and price breaks the active channel boundary.
• ADAPTIVE_TREND_CHANNEL_OPPOSITE_FLIP_EXIT when ADAPTIVE_TREND_CHANNEL_EXIT_ON_OPPOSITE_FLIP=true and the engine emits the opposite flip.
• otherwise POSITION_EXISTS.

ADAPTIVE_TREND_CHANNEL_EXIT_CONFIRMATION_BARS delays either exit until its condition persists. Directional _LONG and _SHORT overrides take precedence. ADAPTIVE_TREND_CHANNEL_REENTRY_COOLDOWN_MS controls the post-trade entry cooldown.

Configuration keys

The keys are grouped by purpose. Common runtime, AI, ML, shared indicator, and position-sizing keys keep the same meaning across the built-in strategies.

Group	Keys	Purpose
Runtime and decision services	ENV, INTERVAL, MAKE_ORDERS, CLOSE_OPPOSITE_POSITIONS, BACKTEST_PRICE_MODE, AI_ENABLED, AI_MODE, MIN_AI_QUALITY, ML_ENABLED, ML_THRESHOLD	Select the runtime mode and candle interval, control order placement, and enable optional AI or ML decisions.
Shared indicators	MA_FAST, MA_MEDIUM, MA_SLOW, OBV_SMA, ATR, ATR_PCT_SHORT, ATR_PCT_LONG, BB, BB_STD, MACD_FAST, MACD_SLOW, MACD_SIGNAL	Set the periods used to build the shared market context.
Channel construction	ADAPTIVE_TREND_CHANNEL_REGRESSION_BARS, ADAPTIVE_TREND_CHANNEL_ENVELOPE_BARS, ADAPTIVE_TREND_CHANNEL_ATR_STRETCH, ADAPTIVE_TREND_CHANNEL_VOLATILITY_LOOKBACK, ADAPTIVE_TREND_CHANNEL_MIN_CHANNEL_WIDTH_PCT, ADAPTIVE_TREND_CHANNEL_MAX_CHANNEL_WIDTH_PCT	Define the regression window, envelope, volatility adjustment, and allowed channel width.
Breakout quality	ADAPTIVE_TREND_CHANNEL_MIN_BREAKOUT_DISTANCE_PCT, ADAPTIVE_TREND_CHANNEL_MAX_BREAKOUT_DISTANCE_PCT, ADAPTIVE_TREND_CHANNEL_MIN_BREAKOUT_DISTANCE_ATR, ADAPTIVE_TREND_CHANNEL_MIN_BREAKOUT_DISTANCE_ATR_LONG, ADAPTIVE_TREND_CHANNEL_MIN_BREAKOUT_DISTANCE_ATR_SHORT, ADAPTIVE_TREND_CHANNEL_MAX_BREAKOUT_DISTANCE_ATR, ADAPTIVE_TREND_CHANNEL_MIN_VOLUME_REL20	Limit breakout distance and relative volume, with directional minimum-distance overrides.
Context and confirmation	ADAPTIVE_TREND_CHANNEL_REQUIRE_CONTEXT_ALIGNMENT, ADAPTIVE_TREND_CHANNEL_MIN_CONTEXT_ALIGNMENTS, ADAPTIVE_TREND_CHANNEL_FLIP_CONFIRMATION_BARS, ADAPTIVE_TREND_CHANNEL_REQUIRE_PRICE_ACCEPTANCE	Require market-context agreement and control flip and price acceptance confirmation.
Target and lifecycle	ADAPTIVE_TREND_CHANNEL_TARGET_R_MULT, ADAPTIVE_TREND_CHANNEL_EXIT_ON_OPPOSITE_FLIP, ADAPTIVE_TREND_CHANNEL_EXIT_ON_CHANNEL_BREAK, ADAPTIVE_TREND_CHANNEL_EXIT_CONFIRMATION_BARS, ADAPTIVE_TREND_CHANNEL_REENTRY_COOLDOWN_MS	Set target distance, exit triggers, exit confirmation, and re-entry cooldown. Directional exit-confirmation overrides are accepted when supplied.
Figures and side policy	ADAPTIVE_TREND_CHANNEL_MAX_FIGURE_POINTS, MAX_LOSS_VALUE, LONG.*, SHORT.*	Limit chart output, set the loss budget, and configure each direction.

Signal Payload

The strategy stores:

• additionalIndicators.adaptiveTrendChannelContext
• channel figures from buildAdaptiveTrendChannelFigures(...)
• orderPlan.qty
• orderPlan.stopLossPrice
• one take-profit at the computed target price

Common Skip Reasons

• NO_ADAPTIVE_TREND_CHANNEL_FLIP
• DEV_TRADE_COOLDOWN
• STRATEGY_DISABLED
• filter-specific skip code from getAdaptiveTrendChannelFilterSkipCode(...)
• INVALID_STOP
• INVALID_QTY
• RISK_RATIO:<value>

Validation Notes

Inspect the generated channel figures before comparing metrics. This strategy depends on structural channel state, so data gaps and warmup length can change early signals.