A Long-Only Strategy Combining Supertrend and LSMA

Summary

This long-only approach combines Supertrend with a least-squares moving average (LSMA). It enters when Supertrend changes to a bullish direction and the selected closing price is above the LSMA. It closes the long position when Supertrend changes to a bearish direction. The published parameters include an ATR length of 14, a factor of 3, and an LSMA length of 101; the backtest configuration uses BTC/USDT futures on a daily chart. No performance statistics are reported.

The LSMA condition acts as an entry filter, while Supertrend supplies the directional signal. The document frames the setup for larger timeframes and trending markets, while acknowledging that both signals can lag during reversals and that results depend on parameter choices. It suggests testing stop losses, position management, and additional filters. These are possible extensions, not evaluated features of the stated rules; the described strategy does not specify a standalone stop-loss or position-sizing rule.

Key ideas

• A long entry requires a bullish Supertrend change and price above the LSMA.
• A bearish Supertrend change closes the long position; the strategy does not open shorts.
• The example settings specify ATR length 14, factor 3, and LSMA length 101.
• Lag can leave the strategy exposed when a trend reverses, and parameters affect its behavior.
• The provided backtest setup has no reported performance results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.