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SuperTrend Trading Strategy with Multiple Filters

Cryptocurrency
Created: 2023-09-15 16:19:57
Last modified: 3 years ago
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This strategy is called SuperTrend Trading Strategy with Multiple Filters. It adds multiple indicators as filters on top of the Supertrend to strictly control entries.

How the strategy works:

  1. Calculate the Supertrend indicator to generate buy and sell signals.
  2. If MACD filter is enabled, buy signals are only generated when MACD crosses above signal line and fast MA crosses above slow MA. Sell signals are only generated when MACD crosses below signal line and fast MA crosses below slow MA.
  3. If EMA filter is enabled, buy signals are only generated when price crosses above 200-day EMA. Sell signals are only generated when price crosses below 200-day EMA.
  4. If Stochastic RSI filter is enabled, buy signals are only generated when Stochastic RSI crosses from overbought to oversold. Sell signals are only generated when Stochastic RSI crosses from oversold to overbought.
  5. If MFI filter is enabled, buy signals are only generated when MFI crosses above its EMA. Sell signals are only generated when MFI crosses below its EMA.
  6. If CCI filter is enabled, buy signals are only generated when price crosses above CCI baseline. Sell signals are only generated when price crosses below CCI baseline.
  7. Use ATR or Bollinger Bands to calculate stop loss and take profit levels.

Advantages of this strategy:

  1. Multiple filters increase signal reliability and avoid false signals.
  2. Strict stop loss and take profit helps control risks.
  3. Customizable parameters and toggle switches provide flexibility.

Risks of this strategy:

  1. Too many filter conditions may miss some trading opportunities.
  2. Improper indicator parameters may render filters ineffective.
  3. Incorrect stop loss and take profit may enlarge losses.

In summary, the SuperTrend Trading Strategy with Multiple Filters considers both trend following and indicator analysis, improving signal quality through multiple confirmations. Reasonable stop loss and take profit mechanisms are key to reducing trading risks. The strategy is suitable for traders with some experience.

Source
Pine
/*backtest
start: 2023-09-07 00:00:00
end: 2023-09-14 00:00:00
period: 1h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © mathlabel

//@version=5
Strategy parameters
Strategy parameters
ATR Length
Factor
Stop Loss Factor
Take Profit Factor
stochlenght
Oversold
Overbought
use_atr_exits
use_bollinger_exits
use_cci_filter
Long Stop Loss (%)
Short Stop Loss (%)
Long profit (%)
Short profit (%)
plotsuper
Trama lenght
Show Lux TRAMA
use_LUX_trama_filter
use_stochastic_filter
ma fast for macd filter
ma slowfor macd filter
use_macd_filter
use_ema200_filter
Plot EMA200
mfi Signal Length
mfi Length
use_mfi_filter
CCI Period Length
CCI ATR Length
bollinger lenght
bollinger StdDev
bollinger Offset
use trailing stop loss (atr or bollinger)?
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