Long-Term Moving Average and ATR SuperTrend Strategy
Summary
This system combines a long-term moving-average filter with an ATR-based SuperTrend to trade in the direction of aligned trends. It opens a long when price is above the moving average and SuperTrend indicates an uptrend, and opens a short when both indicate a downtrend. Open positions are closed when SuperTrend reverses. The described defaults are a 200-period moving average and a 14-period ATR with a factor of 3.
The document explains how ATR adjusts SuperTrend bands to prevailing volatility and outlines risks including lag, parameter sensitivity, whipsaws in ranging markets, and the absence of a fixed stop. It provides a BNB/USDT futures configuration spanning January to March 2025, but no return, drawdown, or trade statistics. There are inconsistencies in the description: it calls the average exponential in places, while the source calculates a simple moving average; it also refers to a 2-hour timeframe, while the published test uses 3-hour bars. These details limit how confidently the prose can be taken as a precise account of the tested setup.
Key ideas
- A long signal requires price above the moving average and an uptrend reading from SuperTrend; a short signal requires both to indicate a downtrend.
- SuperTrend uses ATR-based bands, so its distance from price responds to volatility.
- Positions are closed when SuperTrend reverses, with no separate fixed stop specified in the source.
- Lag, parameter choices, and sideways markets can produce delayed exits or repeated false signals.
- The published BNB/USDT futures configuration contains no reported backtest performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.