Supertrend and Donchian Breakouts with Higher-Timeframe and Volume Filters

Summary

This strategy combines a Supertrend direction signal with a Donchian channel condition, optional higher-timeframe trend agreement, and an optional volume-spike filter. Long entries are enabled by default, while short trades are optional. The script also sets ATR-based stop and target distances and can exit when the Supertrend changes direction.

The code specifies example backtest assumptions, including equity-based sizing, commission, and slippage, but the supplied excerpt ends before the complete entry and exit logic is visible. It gives no performance results or asset-specific evaluation. A notable detail is that the displayed long and short conditions compare the close with the prior lower Donchian channel boundary; the upper boundary is calculated but not used in the visible entry conditions. The setup therefore should not be assumed to implement a conventional upper-channel long breakout without reviewing the full script.

Key ideas

• Supertrend direction is used to determine whether long or short signals may qualify.
• Higher-timeframe Supertrend agreement can be enabled as a trend confirmation filter.
• A volume threshold can require current volume to exceed its moving average by a chosen multiple.
• ATR-based stop and target levels, along with an optional trend-flip exit, are specified for trade management.
• The visible entry conditions compare price with the prior lower channel boundary, and the excerpt omits the full exit logic.

Tags

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