Dual SuperTrend Entries with ATR-Based Stops and Targets
Summary
The strategy combines a pivot-based SuperTrend with a conventional ATR-based SuperTrend. The pivot system updates a center from detected highs and lows and uses ATR bands to maintain a directional trailing line. The classic system independently derives ATR bands and a trend state. A long or short entry is triggered only when both systems agree and the pivot trend has just switched direction. The described exits use a 14-period ATR, with stop and target distances set to 1.5 and 3.0 times ATR, respectively.
The document presents this as an intraday scalping approach intended for short chart intervals, but supplies no backtest results to substantiate claims of accuracy or profitability. It notes that sideways markets can generate false signals, while rapid reversals, parameter sensitivity, slippage, and overfitting may impair results. Suggested additions include trend or volume filters, time-of-day limits, higher-timeframe confirmation, and out-of-sample testing. The stated default equity allocation is not evidence of suitable risk for a particular account.
Key ideas
- Entries require agreement between pivot-based and classic SuperTrend direction, plus a fresh pivot trend reversal.
- The pivot system uses detected highs and lows to update its center and ATR-based trailing bands.
- Stops and targets are described as multiples of a 14-period ATR.
- Ranging conditions, execution costs, parameter sensitivity, and overfitting are cited risks; performance evidence is absent.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.