Supertrend and EMA Crossover Strategy with Fixed Profit and Loss Levels

Summary

This trend-following system combines Supertrend direction with a 44-period exponential moving average. It enters long when price crosses above the EMA while Supertrend indicates an uptrend, and short when price crosses below it during a downtrend. The stated Supertrend settings use a 10-period ATR and factor of 3. The strategy sets a fixed 1% take-profit and stop-loss for each direction and limits maximum position size to one unit.

The document explains the logic and gives backtest settings for BTC/USDT futures, over a daily strategy period with hourly base data. It supplies no return, drawdown, or trade-count results, so it does not establish profitability. Its own caveats include whipsaws in ranging markets, lagging signals, and fixed exits that may not suit changing volatility. The proposed improvements include volatility-based exits, additional filters, higher-timeframe confirmation, and more careful position sizing.

Key ideas

• Supertrend defines the allowed trend direction while price crossing the 44-period EMA triggers entries.
• The described Supertrend uses a 10-period ATR and a factor of 3.
• Each position has a fixed 1% profit target and 1% stop, with a one-unit maximum size.
• The listed BTC/USDT futures backtest settings are not accompanied by performance statistics.
• Ranging conditions and fixed exits are identified as important limitations.

Tags

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