Combining Supertrend, Volume Confirmation, and ATR Trailing Stops
Summary
This strategy combines Supertrend direction with a volume filter for entries. It requires volume to exceed a multiple of its 20-period average and applies a cooldown between trades. Exits use ATR-based trailing orders, with an additional close on an opposite qualifying signal. The published parameter defaults include ATR and Supertrend periods, a Supertrend factor, a volume multiplier, a cooldown, and a trailing-stop multiplier.
The document reports a backtest on ETH_USDT futures over a stated period and claims a 98.72% win rate, 7.384 profit factor, and 1.15% maximum drawdown under specific conditions. It does not provide enough detail to assess those figures, including trade count, fees, slippage, benchmark, or out-of-sample results. The source strategy title refers to AAPL, while the stated test uses ETH futures, a further reason to treat the claims cautiously.
The approach is designed for trending markets; sideways conditions may cause repeated direction changes and losses. Volume filters can also omit trades, and actual fills may differ from backtest assumptions. The document suggests testing across market conditions and adapting filters, stops, and risk controls, but does not validate those proposed extensions.
Key ideas
- Entries require Supertrend direction and volume above a multiple of its moving average.
- A cooldown limits how soon another entry can occur after a trade.
- ATR-based trailing exits and opposite qualifying signals are used to manage positions.
- The document reports strong backtest statistics but omits key context such as trade count and execution costs.
- The test uses ETH futures although the source strategy title references AAPL, and results may not generalize.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.