Triple Supertrend Signals with an EMA Trend Filter

Summary

This trend-following approach combines three Supertrend indicators with different ATR settings and a longer-term EMA. The EMA defines the broad market direction by comparing it with the three Supertrend levels. The intended entry rule calls for at least two Supertrends to show the matching direction while the broader EMA filter agrees. The document describes a risk-reward take-profit setting and an ATR-based trailing stop, with parameters for the indicator periods, factors, EMA length, and exit controls.

It lists a BTC/USDT futures backtest configuration, but provides no performance statistics. The source excerpt is incomplete, and the prose and code do not fully align: the code's boolean grouping may apply the EMA condition only to the final pair of Supertrend checks, and the visible trading section shows long entries rather than a complete long-and-short implementation. The document itself cautions that parameter selection and backtest overfitting are concerns. Multi-market and multi-timeframe evaluation would be needed before drawing conclusions about robustness.

Key ideas

• Three Supertrend indicators with distinct ATR settings provide signals at different sensitivities.
• An EMA is intended to filter entries by the broader trend direction.
• The stated entry idea requires at least two Supertrends to align with the EMA filter.
• Exits are described using a risk-reward target and an ATR-based trailing stop.
• The supplied backtest setup has no reported results, and the source excerpt is incomplete.

Tags

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