Trend Following with SuperTrend and Fisher Transform Signals

Summary

This long-side trend-following strategy combines SuperTrend direction with a Fisher Transform reversal condition. It looks for a bullish SuperTrend turn while the Fisher value is below -2.5 and rising, aiming to enter as an oversold reading begins to recover. The source also sizes a position using a stated risk amount and an ATR-based stop distance, then sets an ATR-based profit target.

The document explains the intended rationale and lists adjustable ATR and Fisher parameters. Its reported backtest setup uses BTC/USDT futures on one-minute bars for a short date range, but it supplies no performance statistics. The source implements a single long entry condition, despite discussion of both market directions, and closes at the first profit target or stop; additional plotted targets are not used for exits. The authors identify ranging markets, persistent extremes, transaction costs, and premature stop-outs as limitations, so the strategy's stated advantages remain unverified.

Key ideas

• A long signal requires a bullish SuperTrend reversal and a Fisher value below -2.5 that is rising.
• The stop and first profit target are set using ATR multiplied by the selected factor.
• Position size is calculated from a configured risk amount and stop distance.
• The source implements long entries and does not demonstrate short-side trading.
• The document provides a backtest configuration but no performance results, and notes exposure to choppy conditions and costs.

Tags

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