Combining Supertrend, RSI, and ATR for Trend Entries and Exits

Summary

This document outlines a trend-following strategy that uses Supertrend direction changes for its primary entry signal, with RSI thresholds as a filter. It describes long entries when Supertrend turns bullish and RSI is below 70, and short entries when Supertrend turns bearish and RSI is above 30. ATR is used to set volatility-scaled exits: the stated stop is four ATRs from price, while profit targets differ between long and short positions. The described defaults include a 12-period RSI and ATR and a Supertrend factor of 2.76.

The published configuration identifies BTC/USDT futures and a backtest interval, but the document gives no performance statistics. It also says the method is intended for a 15-minute timeframe, while the published settings show a three-day period, and the source code does not implement the stated date filter or capital allocation. These inconsistencies limit reproducibility. The document flags false signals in ranges, missed trend starts from RSI filtering, and potentially large losses from wide stops; it recommends adapting parameters and position sizing to market conditions.

Key ideas

• Supertrend direction changes provide the primary trend signal, with RSI thresholds filtering entries.
• ATR sets volatility-based stop distances and profit targets.
• The described stop is four ATRs, while the long and short target distances differ.
• The published backtest settings and source contain inconsistencies with the described timeframe and filters.
• Ranging markets, missed early moves, and wide stops are identified risks.

Tags

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