Filtering Moving Average Crossovers with Supertrend

Summary

This trend-following strategy combines a 10-period and 30-period simple moving average crossover with a Supertrend direction filter. It signals a long when the fast average crosses above the slow average while Supertrend indicates an uptrend, and a short when the crossover and Supertrend both indicate a downtrend. The described Supertrend uses a 7-period ATR and a factor of 2.0. The document also describes fixed stop and target levels based on the signal bar’s price range.

The intended benefit is to filter some crossover signals and participate in directional markets. The text cautions that parameter choices matter, that choppy or event-driven markets can create repeated false signals, and that fixed exits may limit gains. It suggests parameter testing, added filters, and position management, but reports no measured results. The published setup uses BTC_USDT futures on a daily period for about a year, despite the index fund framing, so it provides no direct evidence for index fund performance.

Key ideas

• A long signal requires both an upward moving-average crossover and an uptrend reading from Supertrend.
• A short signal requires both a downward crossover and a downtrend reading.
• The described indicator settings use 10- and 30-period averages, plus a 7-period ATR and a 2.0 Supertrend factor.
• Fixed stop and target levels are based on the signal bar’s range.
• The published BTC futures setup has no reported results and does not validate index fund performance.

Tags

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