Three Supertrend Signals for Multi-Period Trend Following

Summary

This strategy uses three Supertrend calculations, each based on a different ATR length and multiplier, to produce long or short entries when an indicator’s direction changes. The stated purpose is to capture trend changes over short, medium, and longer horizons. The published settings use ATR lengths of 7, 10, and 20 with multipliers of 1.5, 2, and 3. Manual controls allow closing positions and canceling orders.

The document presents the method as a simple trend-following template and discusses its limitations: repeated reversals can generate false signals in sideways markets, parameter selection is difficult, and the indicator may lag at turning points. It also warns that extreme moves require risk controls and that tuning to past prices can overfit. Published test settings specify BTC/USDT futures over a brief historical interval, but no performance statistics are provided. The code triggers entries from each of the three direction changes separately, so it does not clearly require agreement among all three signals.

Key ideas

• Each Supertrend line uses its own ATR length and multiplier to reflect a different sensitivity.
• A change in a line’s direction generates a long or short entry signal.
• The source applies signals from the three calculations separately rather than requiring their agreement.
• Sideways conditions can produce repeated false reversals, while indicator lag can delay entries.
• The published BTC/USDT futures test settings include 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.