Supertrend Crossovers with Fixed Percentage Stops and Targets

Summary

This strategy uses the Supertrend indicator, calculated from ATR and a multiplier, to generate directional signals when price crosses its line. It pairs those signals with fixed percentage stop-loss and take-profit levels for long and short trades. The stated defaults are an ATR period of 14, a factor of 3, and one-percent targets and stops. The text also describes plotting the indicator and exit levels for reference.

The document identifies practical limitations: frequent reversals around the Supertrend line can cause losses in range-bound markets; fixed percentage exits may not fit changing volatility; and the indicator can react late to reversals. It proposes volatility-adjusted exits, higher-timeframe confirmation, filters, and position sizing as potential improvements. Published settings show a daily ETH/USDT backtest over a short period, but no results are provided. The supplied code appears to pass stop and limit values to entry orders using the current close as its reference, which may not implement the described protective exits in the intended way; execution behavior should be checked before relying on it.

Key ideas

• Price crossing above or below the Supertrend line supplies the long or short signal.
• The described risk controls place fixed one-percent stops and targets relative to entry.
• Choppy prices can repeatedly cross the indicator, while fixed exit distances may not match market volatility.
• Higher-timeframe confirmation, volatility-linked exits, filters, and position sizing are proposed extensions.
• The published daily ETH/USDT test settings report no performance evidence, and order handling in the source warrants review.

Tags

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