Supertrend Flip Strategy Diagram
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Supertrend draws a single line that sits below the price in an uptrend and above it in a downtrend, at a distance of several average true ranges from the median price. The diagram trades the moment the close steps over that line: it buys the step up, sells the step down, and holds the side until the next flip.
Strategy Overview
- The Supertrend indicator is built on finished candles; its ATR period sets how far the line stands from price and the multiplier scales that distance.
- A converter takes the close price of each candle, and a crossing block compares it with the Supertrend line, firing only on the bar where the two actually cross.
- The strategy is always in the market after the first signal: there is no stop and no target, only the flip of the line.
Entry and Exit Rules
- Long entry: The close crosses above the Supertrend line and the position is not already long. The order buys Volume plus the absolute value of the current position, which opens a long from flat or turns a short straight into a long.
- Short entry: The close crosses below the Supertrend line and the position is not already short. The order sells Volume plus the absolute value of the current position, which opens a short from flat or turns a long straight into a short.
- Exit: There is no separate exit and no protective stop: the position is left only by the opposite flip of the line, which reverses it in a single order.
Parameters
| Parameter | Default | Description |
|---|---|---|
| ATR period | 10 | ATR period the Supertrend line is built on. |
| ATR multiplier | 3 | Multiplier applied to the ATR, which sets how far the line stands from the median price. |
| Volume | 1 | Base order volume, in lots; the open position is added to it on a reversal. |
| Candles | 00:05:00 | Candle time frame the whole diagram works on. |
Diagram Details
- The candle block feeds the indicator block holding Supertrend and, through a converter, supplies the close price of the same candle.
- Both go into the crossing block, whose output is the long signal, while a logical NOT of it is the short signal.
- Each signal is joined by a logical AND with a comparison of the position against zero, so an entry is never added to a position already held on that side.
- A formula block computes Volume plus the absolute position and feeds the volume input of both position modify blocks, which is how one market order reverses the position.
Usage
Import the .json file into Designer, run it in the backtester on historical data, then adjust the parameters or the blocks themselves to fit your instrument before trading it live.