OPEN-SOURCE SCRIPT
Double Supertrend Entry with ADX Filter and ATR Exits/Entries
Updated
The Double Supertrend Entry with ADX Filter and ATR Exits/Entries indicator is a custom trading strategy designed to help traders identify potential buy and sell signals in trending markets. This indicator combines the strengths of multiple technical analysis tools, enhancing the effectiveness of the overall strategy.
Key features:
Two Supertrend Indicators - The indicator includes two Supertrend indicators with customizable parameters. These trend-following indicators calculate upper and lower trendlines based on the ATR and price. Buy signals are generated when the price crosses above both trendlines, and sell signals are generated when the price crosses below both trendlines.
ADX Filter - The Average Directional Index (ADX) is used to filter out weak trends and only generate buy/sell signals when the market exhibits a strong trend. The ADX measures the strength of the trend, and a customizable threshold level ensures that trades are only entered during strong trends.
ATR-based Exits and Entries - The indicator uses the Average True Range (ATR) to set profit target and stop-loss levels. ATR is a measure of market volatility, and these levels help traders determine when to exit a trade to secure profit or minimize loss.
Performance Statistics Table - A table is displayed on the chart, recording and showing the total number of winning trades, losing trades, percentage of profitable trades, average profit, and average loss. This information helps traders evaluate the performance of the strategy over time.
The Double Supertrend Entry with ADX Filter and ATR Exits/Entries indicator is a powerful trend-following strategy that can assist traders in making more informed decisions in the financial markets. By combining multiple technical analysis tools and providing performance statistics, this indicator helps traders improve their trading strategy and evaluate its success.
Key features:
Two Supertrend Indicators - The indicator includes two Supertrend indicators with customizable parameters. These trend-following indicators calculate upper and lower trendlines based on the ATR and price. Buy signals are generated when the price crosses above both trendlines, and sell signals are generated when the price crosses below both trendlines.
ADX Filter - The Average Directional Index (ADX) is used to filter out weak trends and only generate buy/sell signals when the market exhibits a strong trend. The ADX measures the strength of the trend, and a customizable threshold level ensures that trades are only entered during strong trends.
ATR-based Exits and Entries - The indicator uses the Average True Range (ATR) to set profit target and stop-loss levels. ATR is a measure of market volatility, and these levels help traders determine when to exit a trade to secure profit or minimize loss.
Performance Statistics Table - A table is displayed on the chart, recording and showing the total number of winning trades, losing trades, percentage of profitable trades, average profit, and average loss. This information helps traders evaluate the performance of the strategy over time.
The Double Supertrend Entry with ADX Filter and ATR Exits/Entries indicator is a powerful trend-following strategy that can assist traders in making more informed decisions in the financial markets. By combining multiple technical analysis tools and providing performance statistics, this indicator helps traders improve their trading strategy and evaluate its success.
Release Notes
Bug fixes and cumulative P&L added to the tableRelease Notes
Rolled back cumulative profit/loss counterRelease Notes
Added a user defined trading window by the hourRelease Notes
Bug fixes to make sure entries also show up if one Supertrend criteria is already met (trading within the nether zone between Supertrends).Release Notes
Added Alerts for both long and short entriesRelease Notes
Updated table formatRelease Notes
Added actual lines to represent the stop loss and take profit levels for more accurate order entry. Also added the current ATR in the table for reference.Release Notes
Added current ADX to the tableRelease Notes
Added a random walk index calculation as well as a trigger threshold. Recommended to be set at 0 but can be increased to limit the number of entries significantly.Release Notes
Added backtest stream to be used with the "Backtest Adapter" script by jdehorty. Just select the DSE: Backtest stream option in inputs. Also updated the default vales of everything to work best with NQ on the 5m or the 3m chart.
Release Notes
Removed the second Supertrend and minor script updatesRelease Notes
- added the ability to adjust trading time by 15m increments
- also added trades closing on wick of profit target instead of needing to close over it (simulating a limit order)
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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Disclaimer
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