Mapping Supertrend Performance Across ATR Lengths and Multipliers
Summary
This indicator evaluates a grid of Supertrend settings formed by varying ATR length and multiplier across ten values each. For every combination, it tracks trend reversals as hypothetical entries and exits, records trades and wins, and calculates selectable metrics such as net profit, win rate, profit factor, average trade, and reward-to-risk ratio. It displays the results in a color-coded 3D surface and dashboard, highlighting the best, worst, and most stable regions.
The stability measure favors a strong neighborhood average while penalizing dispersion among nearby parameter combinations; an optional mode applies the selected stable combination to the plotted trend dynamically. This is a parameter exploration aid, not evidence of future profitability. The excerpt gives no asset, period, transaction costs, slippage, or validation procedure, and the simulated trade accounting omits any stated realism checks. Selecting settings on the same history used to score them may overfit.
Key ideas
- The indicator scores one hundred combinations of ATR length and Supertrend multiplier.
- It tracks hypothetical positions that reverse when the Supertrend direction changes.
- Users can compare several performance metrics through a color-coded parameter surface.
- A stable region is favored by combining neighborhood average performance with a variability penalty.
- Historical parameter scores do not establish out-of-sample performance or account for trading costs.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.