If I trade Supertrend with discipline, will I be profitable at end of month?

General
2

Brother, that question interested me also.

Hence tried doing a small exercise on Banknifty. And following is the result. It is self explanatory.

The biggest trade between 08-Jul-16 and 13-Jul-16 made the difference. If that trade was not there or it went into SL, then the situation would have been different.

My Take: We must not feel enthusiastic by figure or depressed by above sentence. I think, if somebody decides to use supertrend as strategy, then there has to be a proper exit strategy. Something like, work with two lots. Book profit on certain points in one lot and then trail the profit with SL as entry point.

Otherway round, instead of waiting for three hundred points together in one trade, better if profit is booked every 30 points and gather those three hundred points in 10 trades.


Regards,

http://baalshastripandit.weebly.com/


1 Like
3

Thank you for the response. What are the parameters that you used for Supertrend? Also, what is the time frame?

4

14-1.5, 15 Minutes, Heikin-Ashi. Hope you have read my edit in above answer.
Regards,
http://baalshastripandit.weebly.com/

5

Also, for your interest in SuperTrend, following answer in tradingqna might be helpful to you:
http://tradingqna.com/40766/what-should-be-the-exit-strategy-for-supertrend

6

In the image you posted, 669 points out of 692 came from 2 trades… So if you discount those two trades, overall its not very profitable, right? I guess we should have a system to avoid whipsaws in Supertrend trades, otherwise it will not be very profitable