A Super Trend is a trend over a long period of time. There are lots of existing scripts that generate signals based on the overall direction of an instrument. What if we combined this idea with a measure of and added a filter to try to avoid choppy sideways action?
I started with a super trend foundation and added an calculation to account for flowing into and out of the asset. Then added a function to stay out of trades when there is not much up/down movement.
- Bright green background = go long
- Bright red background = go short
A white background means we don't trade
A green background means we have a long condition
A red background means we have a short condition
The cloud is green when we have a long condition, red when we have a short condition.
The cloud is yellow if we should be in a long already but the current candle is not satisfying all long conditions.
The cloud is orange if we should be in a short already but the current candle is not satisfying all short conditions.
The line at the bottom is - this is green when the current candle is greater than the last, red when it is less than the last.
A long condition is when > MFI AND we are not in a choppy market AND when price is above the super trend.
A short condition is when < MFI AND we are not in a choppy market AND when price is below the super trend.
We use a fixed Stop Loss of 2% here on the for XBT/USD.
If we get stopped out from a long and we still have the conditions for a long, we re-enter. Same for short.