Keltner Channel Trend Rider Playbook

Execution snapshot

Market regime
Persistent trends with controlled pullbacks.

Primary pairs
Altcoins in momentum rotations; trending majors.

Typical bands
first_band kcb length 20, scalar 1.5 vs second_band ema 34 or supertrend.

Signal rule
Long when EMA/Supertrend confirms above midline; short on breakdown below.

Why this works

Keltner channels adapt width based on ATR, letting you measure when price is extending beyond typical volatility. Using the midline as a baseline and combining it with a trend indicator prevents early exits: you stay in the move until volatility collapses or structure fails.

Configuring in QuantRelay

first_band: kcb (Keltner basis) with length=20, scalar=1.5 (adjust 1.2–2.0 depending on volatility).
second_band: choose ema (length 34) for pure MA confirmation or supertrend (length 10, multiplier 3) for ATR-driven confirmation.
Keep offset=0; the ATR calculations already incorporate smoothing.
Filter the strategy list by profit_factor or streak to highlight durable performers.

Playbook

Entry

Identify pullbacks that hold above the midline and print bullish structure (higher low) before crossing back up.
For supertrend confirmation, wait until the color flips and a candle closes above both the midline and supertrend.

Management

Trail stops just outside the opposite channel band or use a multiple of ATR (e.g., 1.2×) under swing lows.
Scale out when price touches the outer band with momentum divergence or when ATR compresses sharply.

Risk controls

Reassess scalar values frequently; rising volatility demands wider channels to avoid premature exits.
Beware of chop after parabolic runs — momentum confirmation can lag, producing late exits.
Use position sizing aligned with ATR; wide channels imply larger swings and require smaller base size.

Going further

Combine with Donchian breakouts to confirm higher-timeframe structure before committing size.
Add RSI or momentum oscillators to detect exhaustion before the channel midline breaks.
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