Long-Only Supertrend Entries Confirmed by ADX and RSI

Summary

This long-only trend-following system combines Supertrend direction with ADX trend strength and an RSI filter. It enters when Supertrend signals an upward trend, ADX is above its stated threshold, and RSI meets the specified condition; it exits when Supertrend changes direction. The document frames ADX as a strength check and RSI as a way to avoid some poorly timed entries, while providing adjustable indicator settings and a short ETH/USDT spot backtest configuration.

The evidence is limited: the published backtest covers a brief period and includes no performance statistics, so it cannot show whether the rules worked or generalize. The description is also internally inconsistent: it first says RSI should be between 30 and 60, but the stated entry condition accepts values below 40 or above 60. The source implements that latter condition. Other stated limitations include signal lag, sensitivity to Supertrend parameters, a fixed ADX threshold, missed trend starts, and exposure to losses in falling markets because short trades are not included.

Key ideas

• Supertrend supplies the directional signal, while ADX is used to screen for stronger trends.
• The entry rule combines Supertrend direction, an ADX threshold, and an RSI condition.
• The system is long-only and exits when Supertrend changes direction.
• The RSI range described in prose conflicts with the RSI condition in the source.
• The brief backtest configuration reports no evidence of returns or risk-adjusted performance.

Tags

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