Multi-Timeframe Supertrend Entries with ATR Stops and Scaled Targets

Summary

This mechanical strategy seeks trades when lower-timeframe and higher-timeframe Supertrend directions agree, with a fast and slow simple moving average as an additional alignment filter. It supports both long and short entries, permits only one open position, and offers fixed quantity or dollar-risk-based sizing. The script plots the trend lines and marks qualifying signals.

Stops are set using an ATR multiple, while three profit targets are placed at configurable multiples of the initial risk distance and scale out portions of the position. The accompanying description frames the higher-timeframe filter as a way to reduce whipsaws and the targets as a way to capture trend continuation, but supplies no measured results or backtest evidence. There is also a mismatch in execution descriptions: the prose says entry occurs at the next bar's open, while the code enables order processing on bar close. The stop recalculates using current ATR, so its behavior should be examined before treating it as a fixed entry-risk stop.

Key ideas

• Long and short entries require aligned Supertrend direction on chart and higher timeframes.
• A fast and slow moving-average comparison adds a momentum filter.
• ATR determines stop distance, and three risk-multiple targets scale out of the trade.
• Position size can use fixed quantity or an approximate dollar-risk calculation.
• The document asserts a trend-filter rationale but provides no performance evidence, and its prose and code differ on entry timing.

Tags

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