Supertrend Signals Filtered by ADX and Choppiness with ATR-Based Exits
Summary
This script combines Supertrend direction changes with two market-state filters: ADX must exceed a threshold and the Choppiness Index must remain below one. Users can permit long trades, short trades, or both. On entry, the strategy records ATR as a percentage of price, then uses that value to calculate a profit target and an ATR-scaled stop from the average entry price. It also defines a fixed percentage stop, with the visible source beginning to compare the two stop levels.
The excerpt provides indicator lengths and example thresholds, but it ends partway through the exit logic. It includes no backtest period, performance report, or results, so effectiveness cannot be evaluated from this document. A Supertrend flip can still be a false signal, and the thresholds may behave differently across assets and timeframes. Because the source is incomplete, the final stop selection and remaining trade-management behavior are unknown; the visible portion is not enough to reproduce or validate the full strategy.
Key ideas
- Entries require a Supertrend direction flip, ADX above its threshold, and Choppiness below its threshold.
- The script allows users to restrict trading to long positions, short positions, or both.
- Exit distances scale with ATR as a percentage of the recorded entry price.
- A separate fixed percentage stop is also defined, but the excerpt does not show how the stops are ultimately combined.
- No backtest results are provided, and the source ends before the exit logic is complete.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.