Using data from other indicators I came up with a SMART SUPERTREND that auto-adjusts as the market changes - shall we call it "Artificial Intelligence?" Yes, you can fine tune it for specific assets and timeframes, but once the settings are entered, it auto-adjusts as the market and prices evolve.
This is the STUDY version of "Super Smart SuperTrend" with ALERTS. There is also a STRATEGY version which is designed for backtesting various settings.
ABOUT THIS INDICATOR As the name suggests, 'Supertrend' is a trend-following indicator that is notably popular here on Tradingview and elsewhere. It does a remarkably great job of recognizing a trend (in progress) and it will signal you to initiate a position when the trend is clear. Perhaps the greater value of Supertrend is that it helps keep you in your position until that trend is over.
WHAT'S THE BEST ATR PERIOD AND MULTIPLIER? There are two important data points we must enter for Supertrend to work, namely the 'period (ATR number of candles or days)' and the 'multiplier (value by which ATR is multiplied)' BTW, in case you don't know, ATR signals the degree of price volatility. A common default setting is 10 for the ATR period and 3 for the multiplier.
SORRY, BUT THE MOVIE STARTED HALF HOUR AGO... Unfortunately Supertrend has a couple of big weaknesses. Generally, it fails in a sideways-moving market and when it does detect a trend, the signal to get in (or out) comes rather late. It's like someone telling you about a great movie they're watching, but by the time you start watching, one-third of the movie is over... bummer, right?
HOW TO IMPROVE SUPERTREND One solution is to combine Supertrend with other indicators such as MACD, Parabolic SAR, RSI, etc. And another solution is to experiment (backtest) with the Period and Multiplier settings for the asset and timeframe you are considering for trade.
For the STANDARD SETTINGS in this "Super Smart SuperTrend" indicator, I have set 9 for the ATR and 2.2 for the multiplier as default after backtesting on Bitcoin and other crypto (mostly in the 15 minute to 6 HOUR timeframe). Of course you can change this easily to any ATR period and Multiplier you like.
BUT... WHY NOT GET SMART? I started thinking, it might be best if we let the market determine candle-by-candle what the settings should be. If everyone says that Supertrend works best in conjunction with other indicators, why not do our "conjuncting" programmatically (ie: automatically) sorta like artificial intelligence!
HOW IT WORKS So here's what I did. Using data from other indicators I came up with a SMART SUPERTREND that auto-adjusts as the market changes. It still has settings so you can fine tune it for specific assets and timeframes, but once the settings are entered, it auto-adjusts as the market and prices evolve.
With "Super Smart SuperTrend" there is no ATR period setting (that is determined programmatically) and now there are TWO multipliers you can experiment with... (a lower one set at 1.7 default and a higher one at 2.5). These multiplier settings create a multiplier range that can be used programmatically to adjust the multiplier as the market and prices evolve.
THE RESULTS Across all time frames and assets I've tested, I generally get better results. Better entries, better exits and well defined trends. In comparison with a STANDARD Supertrend, it is not radically different, but when it does differ "Super Smart SuperTrend: is almost always better. All this is substantiated by backtesting of course.
SAMPLE BACKTEST RESULTS (BTC/USD) Using Indicator Defaults TIMEFRAME STANDARD RESULTS SUPER SMART RESULTS % Profitable | Profit Factor % Profitable | Profit Factor DAY 58.33% 9.38 75.00% 10.77 4 HOUR 78.43% 18.22 80.95% 21.78 1 HOUR 74.11% 8.98 70.13% 9.34 15 MIN 58.10% 6.10 71.43% 9.48
Keep in mind that "Profit Factor" is key. It basically tells you what you'd make for every ONE DOLLAR invested by consistently trading with the backtested parameters.
SUPER SMART SUPERTREND FEATURES • There is a STUDY VERSION w/Alerts • There is a STRATEGY VERSION for Backtesting • Standard 'Current Time Frame' SuperTrend Line • Standard 'Higher Time Frame' SuperTrend Line • Auto-Adjusting Dynamic Optimized SuperTrend Line > Most Signals Are Same or Better than Standard > Refine Results w/Sensitivity Inputs (2 Multipliers) > Impressive Comparison Backtests • Both Standard and Smart Signals and Alerts • Toggle Any Line/Signal (On/Off) • Toggle Backtest > Standard vs. "Smart Auto-Adjust" > Backtest Higher Timeframe Only
WHAT MORE COULD YOU ASK FOR? So glad you asked. Actually, there is more... Super Smart SuperTrend is incorporated into my premier indicator set called: STONEHENGE PLUS: SUPERTREND TRADING TOOLKIT.
With STONEHENGE, I'm combining this Super Smart SuperTrend with dozens of other indicators plus predictive "Stones." Check out STONEHENGE... you'll be in Trader's Heaven.
SUPER SMART SUPERTREND ALSO WORKS WITH: STONEHENGE BASIC: Double Stone Version (Study w/Alerts): ###### ######
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As always, I appreciate your support. Please share with others.
ENJOY! Dan Hollings Master Crypto Grid Trader Stonehenge Master Mason Host of the "High Leverage Lounge"
Please Explore My Other Indicators, Scripts, Grids and Educational Ideas. @DanHollings on Tradingview.
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릴리즈 노트
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Improved script correcting a higher timeframe repaint issue that was effecting signals and fixed one of the current timeframe alerts. Slight improvement on backtested results.
Hi Mr DH, I came across your indicator and find it very interesting. Is it possible to share the source code with me so that i can learn more from your perspectives? Thank you.
The repainting issue is there in 5 mins TF.
Please suggest me how to solve.
Pardon3000
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Repaints, Better not use it!
phankimtu
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@alexpardon, it is repainted after 4 candles
KryptoNight
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That Repainting!
DanHollings
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@KryptoNight, Thank you. I'll be posting a fix soon.
Rabieg
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@DanHollings, it's 2023 and the indicator still repaints. You Stated in 2019 that you will make the indicator non repainting it will make a huge diffrence
miralbhoot69055
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hello @DanHollings this is one of the most powerful and useful script I had ever seen. is there anyway possible ? I can get code of it as I want to backtest and apply it on NSE NFO options.the problem is they are not listed in tradingview. if you share logic I can code it in python. thanks for amazing work.