Adaptive SuperTrend Regimes with Confluence Scoring and Risk Controls

Summary

This strategy combines a SuperTrend direction signal with regime detection, a weighted confluence score, entry filters, and configurable position and exit controls. It estimates volatility relative to its moving average and uses ADX to classify conditions as trending, ranging, or volatile. When enabled, the regime adjusts the SuperTrend multiplier. A five-part rules-based score considers volume, price distance from the band, EMA alignment, regime quality, and distance from the band before the flip. Entries are gated by a minimum score and can also be filtered by EMA direction, range conditions, volume, and a cooldown.

The script provides risk-based, equity-based, or fixed-unit sizing, with an optional cap on notional exposure. Stops can use ATR, a percentage, or SuperTrend flips; profit targets can use a reward-to-risk multiple, a percentage, or be disabled, and trailing stops are optional. The excerpt gives implementation settings and logic but no performance results or market-specific evidence. Its score weights, regime thresholds, and risk settings are configurable heuristics, so they require independent testing with realistic costs and instrument-specific assumptions.

Key ideas

• The strategy classifies market conditions using ATR relative to its average and an ADX threshold.
• An optional adaptive multiplier changes the SuperTrend band according to the detected regime.
• A weighted rules-based score combines volume, band displacement, EMA alignment, regime quality, and prior band distance.
• Entry filters include trend alignment, ranging conditions, volume, a score threshold, and a cooldown.
• Position sizing and exits are configurable, but the document supplies no backtest results.

Tags

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