SuperTrend Direction Changes with ATR-Based Stops

Summary

This strategy follows SuperTrend direction changes and uses ATR to set trailing stop levels. The published parameters specify an ATR period of 21 and a multiplier of 6.2, with an option to consider candle wicks when determining reversals. A switch can also restrict trading to dates after a chosen start time. The source enters long when direction changes from down to up and short when it changes from up to down, placing stop orders at the corresponding stop levels.

The document presents the method as suitable for Ethereum trading, but its published backtest settings instead identify BTC/USDT futures with daily strategy periods and hourly base data. It provides no performance statistics to support its claims. Risks described include incorrect trend changes, stops triggered by volatility, and transaction costs. The ATR period and multiplier may affect behavior materially, and the stated market suitability should be treated as unverified until tested with consistent instrument, timeframe, fee, and execution assumptions.

Key ideas

• SuperTrend direction changes trigger long or short entries, with stop orders placed at the corresponding stop level.
• The stop bands use the midpoint price adjusted by ATR times a configurable multiplier.
• The settings specify an ATR period of 21 and multiplier of 6.2, plus an optional wick-based reversal check.
• The description names Ethereum, while the published backtest settings specify BTC/USDT futures.
• No performance statistics are provided, and volatility, fees, and stop sensitivity can affect results.

Tags

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