Trend-Following Breakouts from a KAMA, Hull MA, and SuperTrend Cloud

Summary

This trend-following method combines a Kaufman adaptive moving average, a Hull moving average applied to the adaptive average, and a SuperTrend line. The highest of the three values forms the cloud’s upper boundary and the lowest forms its lower boundary. A candle high crossing above the upper boundary opens a long position; a low crossing below the lower boundary, or a close below it, closes the long.

The document explains the indicator roles and provides parameters, source code, and daily BTC-USDT futures backtest settings spanning several months. It does not state performance results, so the settings are not evidence that the method reduced false signals or performed well. The described logic only enters long and exits on a downside break, with no short entry shown. Parameter choice and stop-loss design remain concerns raised by the document.

Key ideas

• The cloud boundaries are the maximum and minimum values among an adaptive moving average, its Hull smoothing, and SuperTrend.
• A high crossing above the cloud top opens a long position.
• A low or close falling below the cloud bottom closes the long position.
• The supplied backtest settings cover daily BTC-USDT futures data, but the document reports no performance figures.
• The method’s discussion emphasizes parameter tuning and the need for explicit risk controls.

Tags

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