Skip to main content

TrendShift

TrendShift is a built-in TypeScript strategy from @tradejs/strategies.

It researches trend transition setups by detecting bullish and bearish flips in a dynamic trend band.

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, with FEE_PERCENT buffer.
  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.

Config Parameters​

Trend-band model:

  • TRENDSHIFT_MULTIPLICATIVE_FACTOR
  • TRENDSHIFT_SLOPE
  • TRENDSHIFT_ATR_LENGTH
  • TRENDSHIFT_WIDTH_PCT
  • TRENDSHIFT_CONFIRM_FLIP_WITH_CLOSE
  • TRENDSHIFT_MIN_FLIP_DISTANCE_ATR
  • TRENDSHIFT_STOP_ATR_BUFFER_MULT
  • TRENDSHIFT_STOP_BUFFER_PCT
  • TRENDSHIFT_TARGET_R_MULT
  • TRENDSHIFT_EXIT_ON_OPPOSITE_FLIP
  • TRENDSHIFT_MAX_FIGURE_POINTS

Shared groups:

  • runtime: ENV, INTERVAL, MAKE_ORDERS, BACKTEST_PRICE_MODE
  • AI/ML: AI_ENABLED, AI_MODE, MIN_AI_QUALITY, ML_ENABLED, ML_THRESHOLD
  • risk: FEE_PERCENT, MAX_LOSS_VALUE, LONG.*, SHORT.*
  • shared indicators: MA, OBV, ATR, BB, MACD fields

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: