Trend-Strength / ADX Filter
Only take trend trades when a strength meter (ADX, |slope|, R² of a fit) says the market is actually trending — a permission layer on top of the signal.
Definition
Trend-Strength / ADX Filter refers to a permission layer on top of the signal. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
It is a named object desks use to frame risk, positioning, or process. When a permission layer on top of the signal shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what trend-strength / adx filter is saying. If a permission layer on top of the signal moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Keep the definition fixed, then challenge it with cross-checks before sizing. Prefer a short written null hypothesis for Trend-Strength / ADX Filter: what would falsify the current reading in the next window?