MTF Supertrend [Trading Nerd]

11 set 2022

Trend Trading Strategy using Supertrends
Backtesting Script that uses a multitimeframeanalysis of the Supertrend Indicator. The trend direction is determind by a higher Timeframe (TF) Supertrend. The entry Signals are given by the Supertrend of the current TF. The script is NOT repainting (the script takes the previous value of the higher TF Supertrend, if the higher TF candle is not confirmed yet).


Strategy Conditions
Longs:

• The higher TF Supertrend has to be green
  
• The current TF Supertrend change from red to green
  

Shorts:

• The higher TF Supertrend has to be red
  
• The current TF Supertrend change from green to red
  

Optional:

• <Trade higher Timeframe Trendchange> Option: If enabled also a trend chage of the higher TF Supertrend is a valid Entry Signal
  
• <Use ADX Filter> If enabled Signals are discarded if the ADX is below the <ADX Threshold> value
  

Take Profit
On default there is no Take Profit. You can activate a Risk Reward Based Take Profit target trough the option. Also a Partial Take Profit is possible.

Stop Loss
The default Stop Loss Strategy is a Trailing Stoploss. As trailing Price the current TF Supertrend is used.

Additional

• Time Filter: Only opens trade in the defined Session. Open trades are still being closed outside of the Session.
  
• Start Date/End Date: Limits the backtest for the defined Date Range
  
• Trading Days: Only open Trades on the checked Days
  
• Risk % per Trade: If enabled the Strategy uses X% of the capital (defined in Settings -> Properties -> Initial Capital)
  
• Use Compound Interest: If enabled Capital is recalculated for every trade (initial capital + net Profit)
  

IMPORTANT: For low Timeframes and Markets with tight SL (like Forex) it requires a lower Margin Percent than default. Go to Settings->Properties and lower the required Long/Short Margin. Otherwise Trades might not be considered because of too less capital/marign. Margins can e.g. set to: 2% (Forex), 10% (Stocks), 20% (Crypto).