Long-Only Trend Following with SuperTrend, EMA, and Fixed Exits

Summary

This long-only trend-following strategy combines SuperTrend, calculated from average true range, with a 200-period exponential moving average. It enters when SuperTrend is bullish and price is above the EMA, and exits when SuperTrend turns bearish while price falls below the EMA. The described configuration uses a 10-period ATR with a factor of 3, plus a stop 1% below entry and a profit target 5% above entry.

The document notes that lagging indicators can react slowly and that whipsaws in sideways markets may raise trading costs. A fixed stop may also be too tight in volatile conditions, while the long-only rule leaves downtrends untraded. It suggests dynamic stops, extra entry filters, parameter testing, and multi-timeframe checks. Published settings identify a BTC/USDT futures backtest period, but no performance evidence is reported; moreover, the source calculates stop and target levels from the current close and passes them as entry order parameters, which may not implement the described entry-based exits as intended.

Key ideas

• A long entry requires bullish SuperTrend and price above the long-term EMA.
• The stated exit requires bearish SuperTrend and price below the EMA.
• The described risk controls use a fixed percentage stop and profit target.
• Lagging signals and sideways markets can cause delayed entries and repeated trades.
• The backtest settings are provided without performance results, and the source order logic may not match the stated exit design.

Tags

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