Supertrend Direction Signals with an Adaptive Trailing Stop

Summary

This trend-following strategy uses changes in Supertrend direction, an ATR-based indicator, to trigger long or short entries within a configurable date range. Trade direction can be limited to long, short, or both. The strategy also maintains a trailing stop whose distance can be set as a percentage of price, an ATR multiple, or a fixed amount; the stop ratchets with price as the position develops. The listed default position size is 15% of account equity.

The published backtest settings specify BTC/USDT futures on daily data from December 2019 to December 2024, but provide no performance statistics. The source code’s explicit entry rules combine Supertrend direction changes with the trailing-stop level; the accompanying explanation describes Supertrend as the trend signal. Stop exit calls are commented out in the source, so the trailing stop’s role in actual trade exits is unclear. The document also notes risks from reversals, slippage, parameter sensitivity, and frequent trading in ranging markets. The claims of profitability are unsupported by reported results.

Key ideas

• Supertrend direction changes trigger potential entries, with settings for long-only, short-only, or two-way trading.
• The trailing stop distance can be defined as a percentage, an ATR multiple, or a fixed price amount.
• The listed default position sizing allocates 15% of account equity.
• The source contains commented-out stop exit calls, leaving the stop’s practical exit behavior unclear.
• The daily BTC/USDT futures backtest has no reported performance metrics, and the document identifies reversal, slippage, and ranging-market risks.

Tags

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