SuperTrend and Smoothed Heikin Ashi Trend Strategy
Summary
This trend-following strategy confirms direction with two signals: an ATR-based SuperTrend and a twice-smoothed Heikin Ashi candle series. Long entries require the smoothed close to exceed the smoothed open while SuperTrend indicates an uptrend; shorts use the opposite conditions. The source sets the SuperTrend from a 10-period ATR and a multiplier of three, and uses 11-period EMA smoothing at both stages. Stops are placed at the relevant SuperTrend line, with three profit targets based on multiples of the entry-to-stop distance.
The document also calculates Gann Square of Nine price levels, but the code does not use them in its entry or exit rules. It describes the approach as more suited to trending markets and warns of false signals during sideways trading. Although it mentions favorable backtest claims, it supplies no performance statistics; the published test settings cover ETH/USDT futures over a limited period. These claims therefore do not establish robustness, and live results may differ.
Key ideas
- SuperTrend direction and smoothed Heikin Ashi candle direction must agree for an entry.
- The strategy uses the SuperTrend line for a stop and sets multiple profit targets by stop distance.
- Gann Square of Nine levels are calculated but are not part of the coded trade logic.
- The document warns that sideways markets can produce repeated losing signals.
- The backtest claims lack reported performance metrics and cover a limited test window.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.