SuperTrend Strategy with Rsi filter for BTCUSD 4H

The SuperTrend Strategy with Rsi filter for BTCUSD 4H indicator is a systematic trend-following tool designed to capture swing movements in the Bitcoin market while managing risk through automated stop-loss and position sizing logic. It combines the classic SuperTrend trend detection with an RSI-based re-entry filter to optimize entry points during consolidated or trending market phases.

Usage

The strategy is optimized for the BTCUSD 4H timeframe. It generates trade signals based on two primary conditions:

• Trend Reversals: A long position is initiated when the SuperTrend flips from a downtrend to an uptrend. Conversely, a short position is initiated when it flips from an uptrend to a downtrend.
• RSI Re-entries: If the RSI filter is active, the strategy can re-enter an existing trend when the RSI crosses back from oversold (for longs) or overbought (for shorts) levels, provided the SuperTrend confirms the direction.

The tool includes an automated risk management module that calculates position size based on a user-defined percentage of account risk. It also features a two-stage exit strategy:

1. Partial Take Profit: Closes a percentage of the position (default 50%) at a set risk/reward ratio.
2. Break-even Adjustment: Once the first target is hit, the stop loss is automatically moved to the entry price to protect capital.
3. Trend Exit: The remaining position is closed if the SuperTrend signal reverses.

Details

The script utilizes the SuperTrend indicator for primary trend identification and an ATR-based stop loss to define risk. Users can choose between an ATR stop loss or a Swing High/Low detection for their exit levels. The strategy is designed to account for compound interest by calculating position sizing relative to the current strategy equity.

Settings

Calculate position

• Enter initial/current capital: Sets the baseline capital for position size calculations.
• % account risk per trade: Determines the USD amount at risk based on the distance to the stop loss.
• Leverage X: Visual reference for required leverage.

Rsi

• Over bought/sold line: Defines the thresholds for the RSI re-entry filter.
• Rsi Length: The period used for RSI calculation.

Super Trend

• ATR Length/Factor: Core parameters for the SuperTrend calculation.

Risk management for trades

• Stop loss source: Choose between "Atr stop loss" or "Swing high/low".
• Risk/reward for breakeven: Sets the multiplier for the first take profit and break-even trigger.
• % of trade for first take profit: The portion of the position to close at the first target.

FAQ

How do I interpret the chart signals? "L" indicates a Long entry, "S" a Short entry. "CL" and "CS" represent closing those positions respectively. "Tp" marks a partial take profit or a stop loss/break-even exit.

Can I use this on other assets? While designed for BTCUSD 4H, the settings can be adjusted for other instruments; however, backtesting is recommended to verify performance.

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