Supertrend and RSI Trend-Momentum Strategy

Summary

This strategy combines Supertrend direction with RSI as a momentum check. It opens a long position when Supertrend indicates bullish conditions and RSI is above 50, and opens a short position when Supertrend turns bearish while RSI is below 50. RSI thresholds of 70 and 30 close the corresponding long and short positions. The script also plots the Supertrend line and entry markers and defines alert conditions for both directions.

The source specifies default settings of a 10-period ATR, a Supertrend factor of 3, and a 14-period RSI. It supplies no strategy report or documented backtest for the original rules, so profitability and robustness are unknown. A comment describes a separate BTCUSDT four-hour test using ATR-based exits and equity risk sizing, reporting a profit factor near 1.25, 942 trades, and a 12% maximum drawdown. Those results apply to the commenter’s modified setup, not the posted strategy, and the document does not provide enough detail to independently evaluate that test.

Key ideas

• Supertrend supplies the directional signal, while RSI above or below 50 confirms momentum for entries.
• The rules allow both long and short entries when their respective trend and RSI conditions align.
• RSI thresholds of 70 and 30 close long and short positions, respectively.
• The original script gives no backtest results, so its performance is not established by the document.
• Reported BTCUSDT results come from a commenter’s modified rules and should not be attributed to the posted strategy.

Tags

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