This strategy combines the SuperTrend indicator with AI-based filtering and the Super Oscillator to enable high-precision trend-following and reversal entries. Additionally, by utilizing a trailing stop, it maximizes profits while strengthening risk management.
📌 Overview This strategy is developed based on indicators from Black Cat and LuxAlgo. The SuperTrend AI Oscillator Strategy combines high-precision trend analysis with AI-based oscillator filtering, making it a risk-managed trading approach.
It identifies trend directions while incorporating AI-driven filtering for accurate entry and exit signals. By utilizing a trailing stop, it effectively adapts to sudden trend changes. It is suitable for Forex, Crypto, and Stock markets across multiple timeframes.
📌 Key Features This strategy integrates multiple advanced techniques to enhance trade accuracy, risk management, and overall profitability.
1️⃣ SuperTrend-Based Trend Identification The strategy utilizes the SuperTrend indicator, which is based on the Average True Range (ATR), to determine the trend direction dynamically.
When SuperTrend flips bullish (0 → 1), a long entry is triggered When SuperTrend flips bearish (1 → 0), a short entry is triggered This ensures that trades are executed only when a clear trend shift occurs, minimizing unnecessary trades during sideways markets.
2️⃣ AI-Based Super Oscillator Filtering To avoid false signals, the Super Oscillator is used as an additional filter. This oscillator measures trend strength and confirms whether the SuperTrend signal aligns with a strong momentum shift.
Long entries are confirmed when the oscillator is above 50 (indicating a strong bullish trend). Short entries are confirmed when the oscillator is below 50 (indicating a weak market or bearish trend). By filtering out weak signals, this component improves entry accuracy and reduces exposure to choppy market conditions.
3️⃣ Trailing Stop for Dynamic Risk Management Instead of using a fixed stop-loss, the strategy employs a SuperTrend-based trailing stop that moves dynamically with price action.
The stop-loss level automatically adjusts based on market volatility. It allows traders to secure profits while letting winners run, instead of closing trades prematurely. This mechanism ensures maximum profitability in strong trending markets. 4️⃣ Optimized Risk-Reward Ratio (Default 1:2, Adjustable) The strategy implements an optimized risk-reward ratio, which is set to 1:2 by default.
If a trade has a 1% stop-loss, the take-profit target is set at 2%. This ensures that even with a 50% win rate, the strategy remains profitable over the long run. The ratio is fully adjustable, allowing traders to customize it based on their risk tolerance and market conditions. 5️⃣ Clear Trade Execution & Visual Signals The strategy provides clear and intuitive visual indicators to help traders easily identify trading opportunities.
Green "BUY" labels indicate long entry points. Red "SELL" labels indicate short entry points. The Super Oscillator is displayed in a separate subwindow with a 50 midline for easy interpretation. The trailing stop is plotted in real-time, dynamically adjusting with price movement. These visual aids help traders quickly assess trade conditions and enhance decision-making without needing complex chart analysis.
📌 Trading Parameters 📊 Initial Account Size: $7,000 📉 Commissions & Slippage: Assumed commission of 94 pips per trade and slippage of 1 pip ⚖️ Risk Per Trade: 5% of account equity (adjustable based on risk tolerance) 📈 Total Trades: 732
📌 Visual Aids for Clarity This strategy provides clear visual trade signals to enhance decision-making: ✅ Green "BUY" labels for long entries ✅ Red "SELL" labels for short entries ✅ Super Oscillator plotted in a separate subwindow with a 50 midline ✅ Trailing stop displayed dynamically for real-time trend tracking
These visual aids allow traders to quickly identify trade setups and manage positions with greater confidence.
📌 Summary The SuperTrend AI Oscillator Strategy is developed based on indicators from Black Cat and LuxAlgo. By integrating high-precision trend analysis with AI-based oscillator filtering, it provides a strong risk-managed trading approach.
Key Takeaways: ✅ SuperTrend-based trend identification & entry execution ✅ Super Oscillator for enhanced entry precision ✅ Trailing stop for dynamic risk management ✅ Optimized risk-reward ratio (default 1:2, adjustable) ✅ Clear visual trade signals (BUY/SELL labels for easy identification)
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Open-source script
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In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.