ATR-Filtered Trend Following with Supertrend and Dynamic Exits

Summary

This strategy combines Supertrend direction, a 50-period EMA trend filter, RSI confirmation, and an ATR-based volatility condition to generate long and short entries. The described setup uses a 14-period ATR compared with its 50-period moving average, or a rising ATR, to qualify market conditions. The strategy also includes a take-profit target, trailing and fixed stop levels, and a break-even trigger, all expressed as ATR multiples.

The document provides default indicator and exit parameters and identifies ETH/USDT futures with daily bars over a stated backtest interval. It reports no performance statistics, so it does not establish profitability or robustness. The notes flag false signals, weak performance in range-bound markets, and sensitivity to parameter choices. The source also makes the practical exit logic difficult to assess fully: several exit prices are recalculated from the current close, and the break-even stop is set beyond the average entry price. Independent implementation review and testing across markets and timeframes would be needed before drawing conclusions.

Key ideas

• Supertrend direction and the 50-period EMA define the directional bias for entries.
• RSI thresholds and an ATR expansion condition provide additional entry filters.
• Take-profit and stop levels are specified using ATR multiples, including trailing and break-even rules.
• The document names a daily ETH/USDT futures backtest setup but supplies no performance results.
• The strategy may produce false signals or struggle in sideways markets, and its exit implementation merits review.

Tags

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