Supertrend and Engulfing Candles with Entry and Exit Levels

Summary

This strategy combines ATR-based Supertrend direction with bullish or bearish engulfing candle conditions. It filters candle patterns using thresholds for the previous candle’s body and the current candle’s body relative to its range, then considers a trade only when the pattern agrees with the Supertrend direction and no trade is already open. The code calculates entry, stop-loss, and take-profit prices from the signal close using pip-like increments, and submits stop entries with corresponding exit orders.

The document describes testing on ETH/USDT over a short daily interval and lists default parameters, but it reports no returns, drawdowns, or other test results. Its narrative calls the risk levels dynamic, while the source uses fixed configured distances from the proposed entry price. It also describes the engulfing candle threshold as a pattern filter, though the code’s condition rejects candles whose body-to-range ratio is below that threshold. Ranging markets, reversals, parameter sensitivity, and slippage are identified as risks; the available material does not show whether the approach performs robustly across conditions or instruments.

Key ideas

• The strategy requires Supertrend direction and engulfing candle direction to agree before signaling.
• Candle body thresholds are used to filter prior and current candles.
• Entry, stop, and target levels are calculated from the signal price using configured increments.
• The code uses fixed distances for risk levels despite the narrative describing them as dynamic.
• The document gives ETH/USDT test settings but no performance results.

Tags

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