Supertrend Entries with ATR Stops and Breakeven Exits

Summary

This partial strategy script combines Supertrend direction changes with volatility-based price bands and position exits. It calculates a channel around an exponential moving average using a multiple of ATR, and uses confirmed Supertrend direction changes to generate long and short entry signals. An ATR-based stop is placed relative to the open trade’s entry price. A separate breakeven rule can move the stop to the entry price after a configured profit threshold is reached.

The excerpt also introduces an early-exit feature based on a second, faster Supertrend, but the source cuts off before the complete exit logic and order handling are shown. The script exposes settings for the channel, entry trend, stop, breakeven, and early exit. No instrument, timeframe, backtest results, or performance analysis appears in the supplied text, so the strategy’s effectiveness cannot be judged. The excerpt is useful as an outline of combining trend signals with ATR risk controls, but implementation details and testing would be needed to evaluate it.

Key ideas

• Entry signals come from changes in confirmed Supertrend direction.
• The channel uses an exponential moving average with an ATR-based width.
• Initial stops are set at an ATR distance from the trade entry price.
• A breakeven stop can activate after the position reaches a specified profit threshold.
• The supplied code ends before the early-exit and order logic is complete.

Tags

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