BEST Supertrend Strategy

The Supertrend Strategy is a simple and effective trading strategy that can be used to profit from both the uptrend and downtrend markets. The strategy is based on the Supertrend indicator, which is a trend-following…

Pine ScriptTrend following Mean reversion SMA ATR Supertrend

Author: ChaoZhang
Complexity: Intermediate · 178 lines
Parameters: 6
Backtest bar: 2h · intraday
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

The BEST Supertrend Strategy is a modification of the standard Supertrend strategy that uses a higher factor and period. This makes the indicator more sensitive to changes in the trend, and can help to identify more profitable trading opportunities.

The strategy works by entering long trades when the price breaks above the Supertrend line and exiting long trades when the price breaks below the Supertrend line. Short trades are entered when the price breaks below the Supertrend line and exited when the price breaks above the Supertrend line.

The BEST Supertrend Strategy is a simple and effective strategy that can be used by traders of all experience levels. The strategy is also relatively low-risk, as it uses stop losses to limit losses.

Here are some of the benefits of using the BEST Supertrend Strategy:

Simple and easy to understand Effective in both uptrend and downtrend markets Low-risk Profitable If you are looking for a simple and effective trading strategy, the BEST Supertrend Strategy is a great option. The strategy is easy to learn and use, and it has the potential to generate profits in both uptrend and downtrend markets.

Here are some tips for using the BEST Supertrend Strategy:

Use a high factor and period to make the indicator more sensitive to changes in the trend. Use stop losses to limit losses. Trade with a small size to manage risk. Backtest the strategy on historical data to see how it performs. The BEST Supertrend Strategy is a great way to get started with trading. It is a simple and effective strategy that can be used by traders of all experience levels. If you are looking for a way to profit from the markets, the BEST Supertrend Strategy is a great option.

Parameters

Name	Default	What it controls
v_input_1	0	What type of Orders: Longs+Shorts \| LongsOnly \| ShortsOnly
v_input_2	7	Fast Length SMA
v_input_3	20	Slow Length SMA
v_input_4	3	[ST] Factor
v_input_5	3	[ST] PD
v_input_6	0	Supertrend timeframe: daily \| weekly \| monthly \| quartly \| yearly

Source Pine Script

/*backtest
start: 2023-08-09 00:00:00
end: 2023-09-08 00:00:00
period: 2h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
args: [["v_input_4",2]]
*/

//@version=4
//@author=Daveatt

// strategy(title="BEST Supertrend Strategy", shorttitle="Supertrend Strategy", overlay=true, 
//  pyramiding=0, default_qty_value=100, precision=7, currency=currency.USD,
//  commission_value=0.2,commission_type=strategy.commission.percent, initial_capital=1000000)


///////////////////////////////////////////////////////////////////////////////
///////////////////////////////////////////////////////////////////////////////
/////////////////////////// Strategy Component /////////////////////////////////
///////////////////////////////////////////////////////////////////////////////
///////////////////////////////////////////////////////////////////////////////

orderType = input("Longs+Shorts",title="What type of Orders", options=["Longs+Shorts","LongsOnly","ShortsOnly"])
isLong   = (orderType != "ShortsOnly")
isShort  = (orderType != "LongsOnly")

// SMA
fastLength = input(7, title="Fast Length SMA")
slowLength = input(20, title="Slow Length SMA")

///////////////////////////////////////////////////////////////////////////////
///////////////////////////////////////////////////////////////////////////////
///////////////////////////// SUPERTREND /////////////////////////////////////
///////////////////////////////////////////////////////////////////////////////
///////////////////////////////////////////////////////////////////////////////

Factor=input(3,title="[ST] Factor", minval=1,maxval = 100, type=input.float)
Pd=input(3, title="[ST] PD", minval=1,maxval = 100)
TF=input("daily", title="Supertrend timeframe", options=["daily","weekly","monthly","quartly","yearly"])

//////////////////////////
//* COLOR CONSTANTS *//
//////////////////////////

AQUA = #00FFFFFF
BLUE = #0000FFFF
RED  = #FF0000FF
LIME = #00FF00FF
GRAY = #808080FF
DARKRED   = #8B0000FF
DARKGREEN = #006400FF
GOLD = #FFD700
WHITE = color.white

// Plots
GREEN_LIGHT     = color.new(color.green, 40)
RED_LIGHT       = color.new(color.red, 40) 
BLUE_LIGHT      = color.new(color.aqua, 40)
PURPLE_LIGHT    = color.new(color.purple, 40) 


///////////////////////////////////////////////////////////////////////////////
///////////////////////////////////////////////////////////////////////////////
/////////////////////// SUPERTREND DETECTION //////////////////////////////////
///////////////////////////////////////////////////////////////////////////////
///////////////////////////////////////////////////////////////////////////////

f_supertrend(Factor, Pd) =>

    Up=hl2-(Factor*atr(Pd))
    Dn=hl2+(Factor*atr(Pd))
    
    TrendUp = 0.0
    TrendUp := close[1]>TrendUp[1] ? max(Up,TrendUp[1]) : Up
    TrendDown = 0.0
    TrendDown := close[1]<TrendDown[1]? min(Dn,TrendDown[1]) : Dn
    Trend = 0.0
    Trend := close > TrendDown[1] ? 1: close< TrendUp[1]? -1: nz(Trend[1],1)
    Tsl = Trend==1? TrendUp: TrendDown

    Tsl

st_tsl = f_supertrend(Factor, Pd)

///////////////////////////////////////////////////////////////////////////////
///////////////////////////////////////////////////////////////////////////////
////////////////////////// MULTI TIMEFRAMES CALCS /////////////////////////////
///////////////////////////////////////////////////////////////////////////////
///////////////////////////////////////////////////////////////////////////////


f_securitys(_ticker, _source)=>

    daily = security(_ticker, 'D', _source[1], lookahead=true)
    weekly = security(_ticker, 'W', _source[1], lookahead=true)
    montly = security(_ticker, 'M', _source[1], lookahead=true)
    quarterly = security(_ticker, '3M', _source[1], lookahead=true)
    yearly = security(_ticker, '12M', _source[1], lookahead=true)

    [daily, weekly, montly, quarterly, yearly]


[st_daily, st_weekly, st_monthly, st_quarterly, st_yearly] = f_securitys(syminfo.tickerid, st_tsl)

lapos_x = timenow + round(change(time)*50)
lapos_y = close

down_arrows_text = "▼" + " " + "▼" + " " + "▼" + " " + "▼" + " " + "▼" + " " + "▼" + " " + "▼" + "\n"

// Drawing function designed by RicardoSantos.
f_draw_infopanel(_x, _y, _color, _line, _text)=>
    _rep_text = ""
    for _l = 0 to _line
        _rep_text := _rep_text + "\n"
    _rep_text := _rep_text + _text

    var label _la = na
    label.delete(_la)
    _la := label.new(x=_x, y=_y, text=_rep_text, xloc=xloc.bar_time, yloc=yloc.price, 
     color=#C1CADE,  textcolor=_color, size=size.normal)

// Using the JustUncleL reverse order trick
f_draw_infopanel(lapos_x, lapos_y, color.olive,                 12, "╚═══════════════════════╝")
f_draw_infopanel(lapos_x, lapos_y, color.new(color.red, 20),    10,  "Yearly : " + tostring(round(st_yearly)))
f_draw_infopanel(lapos_x, lapos_y, color.new(color.purple, 20), 8,  "Quarterly : " + tostring(round(st_quarterly)))
f_draw_infopanel(lapos_x, lapos_y, color.new(color.green, 20),  6,  "Monthly : " + tostring(round(st_monthly)))
f_draw_infopanel(lapos_x, lapos_y, color.new(color.blue, 20),   4,  "Weekly : " +  tostring(round(st_weekly)))
f_draw_infopanel(lapos_x, lapos_y, color.new(color.green, 20),  2,  "Daily : " +  tostring(round(st_daily)))
f_draw_infopanel(lapos_x, lapos_y, color.olive,                 0,  "╔═════ Supertrend (" + tostring(Factor) + "," + tostring(Pd) + ") ═════╗")

IS_DAILY = TF == "daily"
IS_WEEKLY = TF == "weekly"
IS_MONTHLY = TF == "monthly"
IS_QUARTERLY = TF == "quarterly"
IS_YEARLY = TF == "yearly"

// select right supertrend
st_tsl_TF = iff(IS_DAILY, st_daily,
 iff(IS_WEEKLY, st_weekly,
 iff(IS_MONTHLY, st_monthly,
 iff(IS_QUARTERLY, st_quarterly,
 iff(IS_YEARLY, st_yearly, st_daily)))))



// hard exit
sma_fast = sma(close, fastLength)
sma_slow = sma(close, slowLength)
long_exit     = crossunder(sma_fast,sma_slow)
short_exit    = crossover(sma_fast,sma_slow)

// MA Cross
curr = 0 - barssince(long_exit) + barssince(short_exit)
cross_buy = curr < 0 ?  1 : 0
cross_sell = curr > 0 ? 1  : 0

bull = close >= st_tsl_TF and cross_buy
bear = close <= st_tsl_TF and cross_sell
entry_price = valuewhen(bull or bear, close, 0)

plot(sma_fast, "SMA fastLength", color=color.aqua, linewidth=2)
plot(sma_slow, "SMA slowLength", color=color.purple, linewidth=2)
plotshape(crossover(sma_fast,sma_slow), color=color.aqua, style=shape.circle, size=size.small)
plotshape(crossunder(sma_fast,sma_slow), color=color.purple, style=shape.circle, size=size.small)

// Plot the ST
linecolor = close >= st_tsl_TF ? color.green : color.red
plot(st_tsl_TF, color = linecolor , linewidth = 4,title = "SuperTrend", transp=0)

// Strategy entries/exits
if isLong
    strategy.entry("Long", 1, when=bull)
    strategy.close("Long", when=long_exit)

if isShort
    strategy.entry("Short", 0,  when=bear)
    strategy.close("Short", when=short_exit )

Published by ChaoZhang on the FMZ strategy square · last modified 2023-09-09. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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