Combining MACD, Supertrend, and Parabolic SAR for Directional Trading

Summary

This strategy combines MACD, Supertrend, and Parabolic SAR to define directional entries. A long signal requires MACD above its signal line, a bullish Supertrend state, and the close above SAR; short conditions reverse those relationships. The indicators can become aligned in any order, with persistent flags tracking whether each condition is met. The document describes exits using closes across SAR and says the approach uses the full account equity for positions.

The source includes indicator settings and a published ETH/USDT futures backtest configuration covering January through March 2025, but provides no performance figures or evidence of profitability. The written description says exits require two consecutive candles, while the source closes a position after one qualifying close, so the exit rule is inconsistent. It also identifies lagging signals, full-equity exposure without a stop-loss, market volatility, and parameter sensitivity as risks; position sizing and explicit loss controls would need careful evaluation.

Key ideas

• Long entries require bullish readings from MACD, Supertrend, and Parabolic SAR, with inverse conditions for shorts.
• Indicator conditions may align in any sequence because the strategy tracks each state over time.
• The strategy uses full-equity position sizing and does not specify a stop-loss.
• The written exit description conflicts with the source, which closes after one close across SAR.
• A backtest configuration is provided, but no performance results are reported.

Tags

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