SuperTrend Multi Time Frame Long and Short Trading Strategy

The SuperTrend Multi Time Frame Long and Short Trading Strategy indicator provides a comprehensive trend-following system that filters signals across multiple timeframes to increase entry reliability. By confirming trend direction on both local and higher timeframes, the tool aims to capture sustained market moves while mitigating the noise often found in single-period analysis.

Usage

The strategy is designed to execute trades only when the SuperTrend direction aligns across three distinct timeframes: the current chart interval and two user-defined external timeframes (e.g., Daily and Weekly).

• Entry Logic: A Long entry is triggered when the current chart produces a buy signal and both higher timeframes (TF1 and TF2) are also in a bullish state. Conversely, a Short entry occurs when the current chart produces a sell signal and both higher timeframes are in a bearish state.
• Trade Management: The script includes built-in risk management features such as a fixed percentage Stop Loss and three customizable Take Profit levels. Each Take Profit level allows you to define both the price target (percentage) and the portion of the position to close (quantity percentage).
• Directional Filtering: Users can restrict the strategy to take only "LONG", only "SHORT", or "BOTH" sides of the market depending on their personal bias or market regime.

Details

The core calculation is based on the Average True Range (ATR), which determines the distance of the trailing stop from the price.

• Volatility Scaling: The indicator uses a period and a multiplier to calculate the ATR. A higher multiplier makes the indicator less sensitive to minor price fluctuations, while a lower multiplier reacts faster to trend changes.
• Non-Repainting: The multi-timeframe data is requested using request.security with historical offsets to ensure that signals do not repaint on closed bars.
• Automation Ready: The strategy is built with integrated alert conditions for entries, exits, and stop-loss triggers, making it suitable for connection to external execution engines.

Settings

Main Settings

• Timeframe 1 & 2: Sets the higher timeframes used for trend confirmation.
• ATR Period: The lookback period used for the ATR calculation (default is 22).
• ATR Multiplier: The value by which the ATR is multiplied to set the stop distance (default is 3.0).
• Use Close Price for Extremums: When enabled, the trailing stop is calculated based on the highest/lowest close; otherwise, it uses the high/low of the bar.
• What trades should be taken: Filters trade direction (LONG, SHORT, or BOTH).

Trades (Risk Management)

• Stop Loss %: Sets a fixed percentage distance for the initial stop loss.
• TP1/2/3 %: Defines the price percentage targets for the three take-profit levels.
• TP1/2/3 Amount %: Defines what percentage of the total position size should be closed at each target.

Backtesting

• Backtesting Start/End Time: Defines the window of time for historical performance analysis.

FAQ

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.

Can I use this on any asset?

Yes, the SuperTrend Multi Time Frame Long and Short Trading Strategy is versatile and can be applied to Forex, Crypto, Stocks, and Futures.

Why doesn't the strategy take a signal immediately when the color changes?

Because this is a multi-timeframe strategy, it requires the trend to be confirmed on the two higher timeframes selected in the settings before an entry is authorized.