Three Supertrend Signals for Trend Entries and Trailing Stops

Summary

This strategy coordinates three Supertrend indicators built with different ATR periods and multipliers. A main indicator identifies direction, a more responsive secondary indicator can confirm or initiate a signal, and a broader filter is intended to keep trades aligned with the prevailing direction. The source enters long or short when the main or secondary signal agrees with the filter. While a position is open, it places a stop at the main Supertrend boundary; entries use a limit price offset from the current close by a fraction of the distance to that boundary.

The document discusses lag, parameter sensitivity, liquidity, and false signals as risks, and suggests testing other volatility measures and stop methods. It provides parameter defaults and a one-month BTC/USDT futures backtest configuration, but no performance statistics. The description's claims of high accuracy and good live performance therefore cannot be evaluated from the supplied evidence. The source also reuses the same variable for entry limits and later exit limits, making the intended take-profit behavior difficult to interpret.

Key ideas

• Three Supertrend calculations provide a main trend signal, a more responsive signal, and a directional filter.
• The entry logic requires the filter trend to agree with the intended trade direction.
• Open positions use the main Supertrend boundary as a stop level.
• Entries are placed at limit prices offset from the close using the distance to the Supertrend boundary.
• The document supplies no performance statistics, and its limit-price variable reuse complicates interpretation of exits.

Tags

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