Linear Regression Trend Following Strategy

Discover a trend-following strategy using linear regression lines. Enter based on the angle of the line and exit when the trend changes direction, suitable for

Published · Updated · Methodology: Technical Indicators

Part of: Trend Following

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Any time frame (medium to long term)
  • Markets: S&P 500, Euro Dollar, Treasury Bonds (30-year, 5-year, 10-year), Interest Rate Instruments

Source video

Decoded from: How to trade Linear Regression: with Strategy Settings! by Ali Casey | StatOasis — watch the original

Strategy overview

Linear regression trend following treats the trend as a statistical object rather than a visual one: a best-fit line through a window of past prices, whose slope stands in for direction and whose spread describes how far price has drifted from it. What distinguishes this entry from the concept is where its source video puts the emphasis — "How to trade Linear Regression: with Strategy Settings!" places the weight on the settings, not on the idea. The implied claim is that the construction is the easy half and the parameterization is where the method is actually decided, starting with the lookback length, since a regression line is defined entirely by the window it is fitted over.

That dependence is also why the entry is catalogued for any time frame with a medium-to-long-term orientation. A regression fit has no native scale — it describes whatever window it is handed — so the same construction can be applied to a daily chart or an intraday one, with the effective horizon set by the lookback rather than by a session clock. The methodology tag here is technical indicators, and the channel name behind it, Ali Casey | StatOasis, points at the same statistical framing the tool implies: a fitted line and its residuals, not a pattern to be recognized by eye.

Worth stating plainly: despite the title's promise, no indicator settings, chapter timestamps or rule set were captured for this entry. This page carries the concept and the source, not a decoded specification — the particular window lengths and thresholds Ali Casey works with live in the video itself.

Topics

linear regression strategy · trend following strategy · technical indicators · trading strategy · pine script · tradingview strategy · swing trading · s&p 500 trading · forex strategy · bonds trading · interest rate trading · medium term strategy · long term strategy · linear regression angle strategy

Frequently asked questions

What is a linear regression trend following strategy?

It applies a least-squares best-fit line to a rolling window of price. The slope of that line is read as the trend's direction and strength, and the distance of price from the line describes how stretched or compressed the current move is relative to its own recent path.

What time frame does linear regression trend following work on?

This entry is catalogued as applicable to any time frame with a medium-to-long-term orientation. Because the line is fitted to a lookback window rather than to a fixed session, the setting that actually determines the horizon is the window length, not the chart interval.

What settings does this video use?

The source video advertises strategy settings in its title, but no indicator parameters, timeframes or chapter timestamps were captured for this entry — so this page does not list them. For the specific values, go to the source video on the Ali Casey | StatOasis channel.

How is a linear regression line different from a moving average?

A moving average is a smoothed average of past prices and lags the current move by construction. A linear regression line is a fitted trend across the same window, so it ends at the statistical estimate of where price is now and yields a measurable slope — a direction figure rather than a smoothed price.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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