BEST Supertrend Strategy

The BEST Supertrend Strategy tool provides a comprehensive framework for trading multi-timeframe Supertrend breakouts in convergence with moving average crossovers. It aims to identify high-probability trend entries by ensuring price alignment across both trend-following filters and momentum oscillators.

Usage

The strategy enters a position when a convergence occurs between a Multi-Timeframe (MTF) Supertrend signal and a Simple Moving Average (SMA) crossover.

• Long Entry: Triggered when the price is above the selected MTF Supertrend level and the Fast SMA is currently above the Slow SMA.
• Short Entry: Triggered when the price is below the selected MTF Supertrend level and the Fast SMA is currently below the Slow SMA.
• Exit Logic: Trades are closed when the SMAs cross in the opposite direction (e.g., a Long position closes when the Fast SMA crosses under the Slow SMA), allowing the strategy to capture the meat of a trend while exiting during momentum shifts.

The script includes an information panel on the right side of the chart, displaying the Supertrend values for various timeframes (Daily, Weekly, Monthly, Quarterly, Yearly) to assist in higher-timeframe trend bias assessment.

Details

The strategy's core logic relies on "convergence," meaning it doesn't just look for a single crossover but checks if the current state of the Moving Averages aligns with the MTF Supertrend position. By using request.security, the tool fetches trend data from higher timeframes, providing a filter that helps avoid "choppy" signals often found on lower intraday timeframes. The Supertrend calculation itself uses the standard ATR-based formula but allows for significant customization through its Factor and Period settings.

Settings

• What type of Orders: Filters the strategy to execute Longs only, Shorts only, or both directions.
• Fast Length SMA: Determines the period for the faster moving average used for entry convergence and exits.
• Slow Length SMA: Determines the period for the slower moving average used for entry convergence and exits.
• [ST] Factor: The multiplier used for the Supertrend calculation (higher values result in wider stops).
• [ST] PD: The lookback period (ATR) used for the Supertrend calculation.
• Supertrend timeframe: Selects the specific timeframe (Daily to Yearly) from which the Supertrend level is derived.

FAQ

How do I access the BEST Supertrend Strategy?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I change the higher timeframe used for filtering?

Yes, the "Supertrend timeframe" setting allows you to choose from Daily, Weekly, Monthly, Quarterly, or Yearly data regardless of your current chart timeframe.

Does this strategy include a fixed Stop Loss or Take Profit?

The default logic uses a "trailing" exit based on the SMA crossover. Users can manually add fixed risk parameters within the script's entry/exit logic if desired.