This is a triple SuperTrend based strategy for lower time frame trades such as day trades and scalping. I have not seen many strategies that combine multiple SuperTrends so I thought I would publish this one since I put it together and have been quite happy with the results. I have found through testing that the best results are on currency exchange markets such as Crypto or Forex on 1-15 min time frames.
The core idea was inspired by a youtube video put out by Trade Pro: "Trade Pro - HIGHEST PROFIT Triple Supertrend Trading Strategy Proven 100 Trade Results" I went ahead and set the defaults to the ones he uses in his video for anyone who wants to try a configuration similar to his. They work pretty well in general, however the EMA, SuperTrend ATR multipliers, and P/L ratio can be tuned/optimized to fit the timeframe/market desired. The video is quite good but not a required watch as I will explain below.
The 200EMA is used as a medium-term trend direction indicator. - Price closing consistently above the 200EMA means that only long positions should be entered. - Price closing consistently below 200EMA means that only short positions should be entered.
The 3 SuperTrend indicators should be used as direction confirmation for entries. Typically, price above SuperTrend indicates bullish movement, while price below SuperTrend indicates Bearish movement. However by itself, it is not a great indication to enter/exit positions in my experience. By combining 3 of them with slightly longer periods and increased ATR multipliers, we can get much stronger confirmation of trend direction/strength. The way they are used in this strategy is such that: - We only want to enter a position if at least 2 out of 3 SuperTrends are on our side. - 3/3 SuperTrends on our side is the best case, since we are taking trades WITH momentum/price strength. - The second farthest SuperTrend from entry price is used as a Stop Loss
SuperTrend being on our side is not the only requirement for an entry however. The probability of success is increased with SuperTrend, and a longer EMA on our side, but we want to be sure that we aren't getting in too late/after the movement has already happened.
So we use Stoch RSI to pick our entries where price is oversold/overbought and reversing. That means the Stoch RSI is above 80, or below 20, and our indication to enter the trade is when the 2 lines cross/begin reversing direction.
So with trend direction on our side, we can get really good entries at these oversold/overbought extremes, especially as it's reversing (Stoch RSI K and D are crossing). This allows us to use the SuperTrend as a support/stop loss on our entry since price should be above it.
Then we just target 1.5x our max loss so that even if we only win 50% of the time, we still make a profit.
The explicit rules of this strategy are as follows: === Rules === long only - price above EMA200 short only - price below EMA200 Stop Loss = 2nd SuperTrend line above (short) or below(long) entry candle Profit = 1.5x SL/risk (Profit Ratio x Max Loss)
=== Entry Setup === LONG - Stoch RSI below 20, cross up - at least 2 SuperTrend lines below close
SHORT - Stoch RSI above 80, cross down - at least 2 SuperTrend lines above close
P.S. Special thanks to Trade Pro for producing so many quality videos, putting strategy claims to the test, and providing me with so many good ideas I apply to my own strategies.
發布通知
⋅
Added back the Backtest Start Time conditional that was removed just prior to initial release accidentally. Oops!
發布通知
⋅
There was also 1 more thing I thought I should rename and explain a bit.
"Stoch RSI Entry Zone +/-" represents the overbought/oversold area threshold for Stoch RSI entry conditions. The default value is 20, which means that long entries will only be taken when Stoch RSI is below 20, and short entries will only be taken above 80 (100 - 20). For example, if you change it to 30, it will only enter longs below 30, and shorts above 70.
Unfortunately the alert does not work properly. I tried here and there to modify it, but to be honest I'm not really into that coding thing. I added you indicator / strategy to my chart and activated the alert. Sometimes it triggers, sometimes it doesn't. If you have a clue what the problem is I would be happy if you could let me know. Thanks, mel0n. So long.
Meshidorin
⋅
@Future933, you bred to convert it into a study first. Videos are available om youtube.
jeyel81
⋅
Thanks for sharing!
Anyone here used this strategy profitably?
pigezuka54
⋅
Hello, thank you
I do not have the option to buy and sell alarms
Please check and fix the alarm option. Thanks
Meshidorin
⋅
Actually, your strategy is not entirely the same. I believe he only opens a trade if ALL supertrends are agreing. This strategy only requires 2 of them.
michlin67
⋅
Thx, Mel0n, for preparing & sharing this strategy here on TV!! Nice work, man - really appreciate it...
RUBBABANDMAN
⋅
Hello, thanks for sharing this great work. I have a question though, how would you translate the strategy exits :