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Does ATR Low Volatility help WMA Trend?

Stocks · 59 backtest runs · As of 29 Jun 2026 · Methodology

HurtsDSR ✗ not confirmed

This filter reduces median CAGR by more than 1 percentage point — either more false signals or too many blocked trades.

CAGR Comparison

Baseline CAGR
8.4%
no filter
Filtered CAGR
1.1%
ATR Low Volatility
Δ CAGR
-7.30%
Sample
59
runs
Baseline Net CAGR
8.3%
after costs
Filtered Net CAGR
0.9%
after costs

Risk-Adjusted Performance

Baseline Sharpe
0.278
median
Filtered Sharpe
0.075
Δ Sharpe
-0.20
DSR
3.7%
not confirmed

How does this filter work?

Signals only in low ATR regime

DSR Methodology

DSR = PSR(SR̂₀) per Bailey & López de Prado (2014). SR̂₀ = 0.5574 (expected best Sharpe from 7 random filter trials).

Testing multiple filters on the same data increases the chance of finding a good result by luck. DSR measures whether this result clears the multiple-testing threshold. Pass threshold: DSR ≥ 90%. Current: 3.7%.

Full analysis in Edge Library

Per-asset breakdown, trade-level data, Sharpe comparison — available after sign-in.

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