Trend Chaser: Multi-Indicator Entries with SuperTrend Exits
Summary
This post describes an automated system for long and short positions, intended to work better on longer chart intervals, beginning at four hours. Long entries require a weighted rate-of-change measure and MACD to be rising while below zero, alongside a stochastic reading in a lower range. Short entries use falling rate of change and MACD above zero, with stochastic in a higher range. Positions exit when price crosses the SuperTrend line in the direction specified for that trade. The system allows two SuperTrend parameters, which the author says should be optimized for each instrument.
The author reports results from four tests and describes a large gain for the DAX over about fifteen weeks, while also noting that this test had the largest drawdown. These are anecdotal results; the post gives no full test settings, transaction costs, benchmark, or robustness analysis. It recommends forward testing before risking real money. Instrument-specific parameter optimization and limited reported evidence leave substantial overfitting and generalization concerns.
Key ideas
- Long entries combine rising rate of change and MACD below zero with a stochastic reading between 20 and 40.
- Short entries combine falling rate of change and MACD above zero with a stochastic reading between 60 and 80.
- SuperTrend crossovers provide exits, and its two parameters are intended for instrument-specific optimization.
- The author says the system appeared more suited to chart intervals of four hours or longer.
- Reported tests include a strong DAX result with the greatest drawdown, but testing details are limited.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.