Supertrend, RSI, and Volume Confirmation with ATR Exits

Summary

This rules-based strategy combines trend, momentum, and volume conditions to enter trades. A long requires an upward Supertrend, RSI above 60, and volume exceeding 1.5 times its 20-day average; a short uses a downward Supertrend, RSI below 40, and the same volume condition. ATR sets the stop distance at 1.2 times ATR, while the profit target is 2.5 times that distance. The stated default allocates 20% of account equity to each trade. The published configuration describes a daily BTC/USDT futures backtest spanning about a year, but gives no performance figures.

The document presents the combined filters as a way to avoid weak signals and describes the approach as suited to strong trends. It also identifies limitations: fixed thresholds may behave poorly in different regimes, volume data may be unreliable, and the stop may be tight in volatile markets. It suggests adaptive thresholds and parameters, timeframe and session filters, signal-based sizing, and additional sentiment inputs; these are proposals, not tested findings.

Key ideas

• A long signal requires an upward Supertrend, RSI above 60, and a volume surge; the short rules reverse the trend and RSI conditions.
• ATR sets the stop distance, and a fixed risk-reward multiple determines the target.
• The stated position allocation is 20% of account equity per trade.
• Fixed thresholds, volume quality, and stop distance may limit performance across market regimes.
• The published daily BTC/USDT futures setup includes no reported performance results.

Tags

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