Bitcoin Supertrend Entries Filtered by a Long-Term EMA

Summary

This Bitcoin-focused trend strategy uses an ATR-based Supertrend flip as its directional trigger and a long-period EMA as a trend filter. It takes long signals when the Supertrend turns upward and price is above the EMA, and short signals when it turns downward and price is below it. An optional ADX threshold can screen out weaker trend conditions. Positions close on an opposite Supertrend flip, with optional percentage-based stop and profit levels available as additional controls.

The document describes the intended use as BTCUSD on a one-hour chart and includes modeled commission and slippage settings, but it does not provide numerical backtest results in the supplied text. It characterizes the approach as trend following, where losses and whipsaws may occur while the method relies on larger trends to offset them. The strategy’s defaults and stated use case do not establish performance on other assets or timeframes; those would require separate evaluation, including costs and risk.

Key ideas

• A Supertrend direction change supplies the primary long or short signal.
• An EMA filter restricts entries to the direction of the broader price trend.
• An optional ADX condition filters entries based on trend strength.
• Opposite Supertrend flips close positions, while percentage stops and targets are optional.
• The stated BTCUSD one-hour use case and cost assumptions do not establish results on other markets.

Tags

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