Trading with Supertrend Indicator results

Algos, strategies, code
1

I am currently using 5min chart on crude mini and my supertrend settings are set to Multiplier=14 ATR=3 some days it does 5 trades and all in loss.
How can I filter these noise ?

Supertrend works great when script in good trend but during sideways it always hit stop losses.
I tried to add filter of RSI also but mostly it doesn’t filter bad trades.

What can be done to reduce number of trades and avoid trades in sideways market ?

2

You can use CCI and ADX to avoid noise also use 15min/ 30min chart instead of 5min chart

3

What would be the condition for CCI and ADX ?
Should I use both or try with one by one ?

4

CCI & ADX Will help to find out the phase of the direction of the stock,. you need to use both to filter out the noise. adx rising above 20 will show the trending phase and below it will be trading phase , DI cross over shows the direction of the stock, CCI ( +200 overbought and -200 oversold ) For reference i am uploading chart for Crude oil, which is in a down trend

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1 Like
5

I have implemented the ADX in my strategy lete see how it goes.
Thanks for your input.

6

Hi satty,
My opinion about filtering noise in the market is that you should use 2 non correlated method that arrives at same conclusion. When you are using oscilators they are the same type. And about supper trend that that will not give you good risk reward ratio. And you can use two oscilator to confirm each other or when one is failing to detect the chnage in sentiment. And you can use 1:4 ratio time frame to analyze that will filter out some noise like 15 min 60 min 240 min etc. And I know the importance of what I just have told. Hope this will help.

7

Thanks Kunal for your inputs…
I tried with ADX-25 but not much filtering done still taking many trades and hit stoplosses.
I want to use supertrend as it gives me early access to trend change and give me flexibility to ride more.
But not able to filter out noise…

I am thinking of using 50EMA to double check the trend
BUY : when Close > EMA50 and SuperTrend = BUY
SELL: when Close < EMA50 and SuperTrend = SELL

No buy trades when CloseEMA50.

8

Hi Satty, I personally dont like ADX. And from your style of trading i assume you want to have a mechanical system. Well thats good but you need to have a perspective about market and need to understand the context of the market then actually you can filter out noise from your indicator.
Some Ideas from my end -

  1. Look for super trend in renko chart
  2. Can use keltner channel and supper trend for filter out some noise.

Regards,
Kunal

9

Sir for bank nifty 1 hour chart wat is setting for supper trend

10

You can try 10/3 period/multiplier, but i would like to explain a bit about super trend, Super trend is a trend following indicator , it can be comparable to MACD, works better in trending period of stock/index , prone to whipsaws , especially , if multiplier is changed.