Pivot Breakout Entries Filtered by SuperTrend Direction
Summary
This strategy combines confirmed pivot highs and lows with SuperTrend direction to set breakout entries. A pivot high can arm a long stop entry just above that level when SuperTrend indicates an uptrend; a pivot low can arm a short stop entry just below the level during a downtrend. The settings allow long-only, short-only, or two-sided trading, and exits use a stop set as a percentage of the pivot price. The documented defaults include six bars to the left and three to the right for pivot detection, an ATR length of five, a factor of 2.618, and a 20% stop. The published BTC/USDT futures backtest period is specified, but no results are reported.
Pivot identification requires right-side bars, so signals are confirmed after the pivot forms. False breakouts remain possible, and the SuperTrend filter can exclude valid reversals when its direction is wrong. The article proposes volume confirmation, multiple timeframes, alternative filters, and stop adjustments as ideas to investigate; it supplies no evidence that these improve performance.
Key ideas
- Pivot highs and lows define breakout levels for stop entries.
- SuperTrend direction gates long entries to uptrends and short entries to downtrends.
- The strategy supports long-only, short-only, or two-sided trading and uses percentage-based stops.
- Pivot confirmation uses bars on both sides of a candidate turning point, which can delay signals.
- The published backtest settings include no performance statistics.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.