Triple SuperTrend Consensus with ADX Filters and ATR Risk Sizing

Summary

This trend-following strategy combines fast, medium, and slow SuperTrend signals. Traders can require all three lines to agree, accept a two-of-three majority, or use the fast and slow lines together. Long and short entries also require directional movement to point the same way as the trade and ADX to exceed a configurable strength threshold. Optional filters check whether ADX is rising, volume exceeds its average, and a higher-timeframe SuperTrend agrees.

Position size can be based on a chosen equity risk amount divided by the distance to the slow SuperTrend, with an ATR-based minimum stop distance. The strategy exits when the fast SuperTrend reverses and also places a stop at the slow line. The script specifies commission and slippage assumptions, but the document supplies no performance results. Its own guidance warns that trend systems can struggle in sideways markets and calls for testing filters, instruments, timeframes, and execution costs before use.

Key ideas

• Three SuperTrend lines provide configurable trend consensus for entries.
• ADX strength and directional movement filter trades, with optional volume and higher-timeframe confirmation.
• Position sizing can scale with the stop distance and a target equity risk amount.
• Exits use a fast-line reversal and a stop at the slow SuperTrend.
• The strategy may underperform in choppy conditions, and the document gives no backtest results.

Tags

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