FRAMA Crossover Signals with SuperTrend Risk Management

Summary

This trend-following approach uses a fast and slow Fractal Adaptive Moving Average (FRAMA) crossover to generate long and short signals. A SuperTrend direction check can optionally filter entries, and a reversal can optionally close positions. The strategy also supports fixed profit and loss distances and a trailing stop with an offset. The listed defaults include a FRAMA length of 12 and SuperTrend factor of 3 with period 7; the entry and exit filters are disabled by default.

The document presents the strategy concept and suggests tuning the moving-average, ATR-based SuperTrend, and trailing-stop parameters. It warns that crossover lag and whipsaws in ranging markets can hurt results, and that stop settings can be too tight or too loose. No performance metrics are provided; the published BTC/USDT futures test is only about two weeks. The prose’s claim that SuperTrend filters trades and manages exits is conditional, since the corresponding options default to off. The test period and lack of reported results do not establish profitability or robustness.

Key ideas

• Crossovers between fast and slow FRAMA lines generate directional entry signals.
• SuperTrend can be enabled to filter entries and close trades on a direction reversal.
• Fixed targets, fixed stops, and a trailing stop are available as risk controls.
• The SuperTrend entry and exit options are disabled in the listed defaults.
• The short published test reports no performance evidence, and ranging markets may cause whipsaws.

Tags

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