TrendShift

TrendShift trades transitions detected as bullish or bearish flips in a dynamic trend band.

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. Replays candles through createTrendShiftEngine(...).
2. Reads runtimeState.signal and runtimeState.snapshot.
3. Skips until a bullish or bearish flip exists.
4. Applies volatility and strategy guardrails.
5. Selects LONG or SHORT side config from signal direction.
6. Places the stop beyond the current band with ATR and percent buffers.
7. Computes target from TRENDSHIFT_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 trend-shift figures and trendShiftContext.

Entry codes:

• TRENDSHIFT_BULLISH_FLIP
• TRENDSHIFT_BEARISH_FLIP

Exits

When a position exists:

• TRENDSHIFT_OPPOSITE_FLIP_EXIT when TRENDSHIFT_EXIT_ON_OPPOSITE_FLIP=true and the engine emits the opposite flip.
• otherwise POSITION_EXISTS.

Configuration keys

The keys are grouped by purpose. A listed _LONG or _SHORT key overrides the unsuffixed value for that direction.

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 shared market context and signal filters.
Trend band	TRENDSHIFT_MULTIPLICATIVE_FACTOR, TRENDSHIFT_SLOPE, TRENDSHIFT_ATR_LENGTH, TRENDSHIFT_WIDTH_PCT	Set the dynamic band response, slope, ATR period, and width.
Entry quality	TRENDSHIFT_CONFIRM_FLIP_WITH_CLOSE, TRENDSHIFT_MIN_FLIP_DISTANCE_ATR, TRENDSHIFT_MIN_SIGNAL_BODY_STRENGTH, TRENDSHIFT_MIN_ADX	Require close confirmation and set distance, candle-body, and trend-strength floors.
Target, stop, and exit	TRENDSHIFT_STOP_ATR_BUFFER_MULT, TRENDSHIFT_STOP_BUFFER_PCT, TRENDSHIFT_TARGET_R_MULT, TRENDSHIFT_TARGET_R_MULT_LONG, TRENDSHIFT_TARGET_R_MULT_SHORT, TRENDSHIFT_EXIT_ON_OPPOSITE_FLIP, TRENDSHIFT_OPPOSITE_EXIT_CONFIRMATION_BARS	Set stop and directional target distances and configure a confirmed opposite-flip exit.
Figures and side policy	TRENDSHIFT_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.trendShiftContext
• band, flip, stop, and target figures from buildTrendShiftFigures(...)
• orderPlan.stopLossPrice
• one take-profit at the computed target

Common Skip Reasons

• WAIT_DATA
• NO_SIGNAL
• POSITION_EXISTS
• VERY_VOLATILITY
• guardrail skip code from getTrendShiftGuardrailSkipCode(...)
• DEV_TRADE_COOLDOWN
• STRATEGY_DISABLED
• INVALID_STOP
• INVALID_QTY
• RISK_RATIO:<value>

Validation Notes

Revalidate after changing market context, timeframe, or risk settings. Trend-transition systems are vulnerable to overfitting because small band and confirmation changes can move flips across candles.

Related:

• Compare strategies
• Backtesting caveats