SuperTrade ST1 Strategy

Overview

The SuperTrade ST1 Strategy is a long-only trend-following strategy that combines a Supertrend indicator with a 200-period EMA filter to isolate high-probability bullish trade setups. It is designed to operate in trending markets, using volatility-based exits with a strict 1:4 Risk-to-Reward (R:R) ratio, meaning that each trade targets a profit 4× the size of its predefined risk.

This strategy is ideal for traders looking to align with medium- to long-term trends, while maintaining disciplined risk control and minimal trade frequency.

How It Works

This strategy leverages three key components:

Supertrend Indicator

1. A trend-following indicator based on Average True Range (ATR).
   
2. Identifies bullish/bearish trend direction by plotting a trailing stop line that moves with price volatility.
   

200-period Exponential Moving Average (EMA) Filter

• Trades are only taken when the price is above the EMA, ensuring participation only during confirmed uptrends.
  
• Helps filter out counter-trend entries during market pullbacks or ranges.
  

ATR-Based Stop Loss and Take Profit

• Each trade uses the ATR to calculate volatility-adjusted exit levels.
  
• Stop Loss: 1× ATR below entry.
  
• Take Profit: 4× ATR above entry (1:4 R:R).
  
• This asymmetry ensures that even with a lower win rate, the strategy can remain profitable.
  

Entry Conditions

A long trade is triggered when:

• Supertrend flips from bearish to bullish (trend reversal).
  
• Price closes above the Supertrend line.
  
• Price is above the 200 EMA (bullish market bias).
  

Exit Logic

Once a long position is entered:

• Stop loss is set 1 ATR below entry.
  
• Take profit is set 4 ATR above entry.
  
• The strategy automatically exits the position on either target.
  

Backtest Settings

This strategy is configured for realistic backtesting, including:

• $10,000 account size
  
• 2% equity risk per trade
  
• 0.1% commission
  
• 1 tick slippage
  

These settings aim to simulate real-world conditions and avoid overly optimistic results.

How to Use

• Apply the script to any timeframe, though higher timeframes (1H, 4H, Daily) often yield more reliable signals.
  
• Works best in clearly trending markets (especially in crypto, stocks, indices).
  
• Can be paired with alerts for live trading or analysis.
  

Important Notes

• This version is long-only by design. No short positions are executed.
  
• Ideal for swing traders or position traders seeking asymmetric returns.
  
• Users can modify the ATR period, Supertrend factor, or EMA filter length based on asset behavior.