SuperTrend Entries with ATR Stops and Multi-Indicator Filters

Summary

This ETH/USDT strategy uses SuperTrend to define direction and layers MACD, ADX, candle direction, and volume conditions onto entries. Long signals require a bullish SuperTrend reading, a positive MACD histogram, ADX above its threshold, an up candle, sufficient volume, and no detected triple divergence. Short signals use bearish direction, a negative histogram, strong ADX, a down candle, sufficient volume, and the presence of triple divergence. Exits combine an ATR-based stop with closing on a SuperTrend reversal.

The document describes RSI, MACD histogram, and volume comparisons as components of its triple-divergence warning. It lists missed trades from strict filters, overfitting, repeated stops in volatile markets, gas costs, and noisy sideways conditions as limitations. Published settings specify Binance ETH/USDT on hourly bars from February 2024 to February 2025, but the document gives no backtest results. The code and prose also differ in detail about the divergence filter: the described six-layer process is not equivalent to all entry conditions, so the actual signal logic merits careful verification before evaluation.

Key ideas

• SuperTrend provides the directional framework, while MACD, ADX, candle direction, and volume further filter entries.
• The long and short rules use different divergence requirements, with triple divergence required for shorts and excluded for longs.
• ATR determines stop distance, and a SuperTrend reversal can close an open position.
• The document warns that strict filters may reduce trade frequency and that parameter tuning can overfit.
• The published hourly ETH/USDT test setup includes no reported performance statistics.

Tags

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