Trading Strategies Revealed – “Super Trend” review

Trend reversal trading strategy “Super Trend” is designed mainly for Forex and can be used on all currency pairs on H1, D1, W1 time-frames. Its rules state that:

A trader should place a buy order when price is above 200 SMA and Super Trend Indicator changes its colour from red to green. A sell order should be placed when price is bellow 200 SMA and Super Trend Indicator changes its colour from green to red. Stop Loss equals to 1.5*ATR.

For our test, we have used a Trailing Stop which is launched after a trade has started and is modified each new 1 pip of profit. From our point of view, such approach allows to maximize profit and minimize drawdown. We have run the test for 2010.01.01-2019.07.18 using Control Points modelling on EURUSD-H4, with 1:18 leverage, without reinvestment, assuming spread equals 10 ticks, with starting balance $10,000. These are the main parameters of financial performance, that may allow you to evaluate whether this strategy worth your attention or not:

ROI# of tradesWinning ratioMax. drawdown
119.13%51637.21%70.24%

The following charts may give some possible insights on which filters to apply (time sessions, day of week limitation, trend strength threshold, overbought/oversold conditions, volatility range) to turn this strategy profitable should you decide to use this strategy in your investment portfolio:


Analysis Insights



1. “Super Trend” trading strategy has produces 11.9% annualized ROI during 2010–2019 years using 1:18 leverage. Maximum drawdown was 70.21%.

2. Trades were more profitable at a higher volume and have brought more losses when volume was low while trading “Super Trend” trading strategy during 2010-2019 years. High trading volume usually confirms the current trend.

3. Most profitable buy trades were opened at a Bears value less then zero, while most profitable sell trades were opened at a Bulls value more than zero, when trading “Super Trend” trading strategy during 2010–2019 years. Low power of “Bulls & Bears” indicator may indicate the beginning of a trend.

4.  We have analyzed data received from the test of “Super Trend” trading strategy during 2010–2019 years and applied some filters such as ADX, RSI, Stochastic, RVI, Bears & Bulls. As a result, the profitability of the strategy has increased from 11.99% up to 51.82% and its drawdown has reduced from 70.21% to 10.77% using leverage 1:18. Reducing the drawdown has allowed us to increase the leverage up to 1:24, which in turn, has resulted in annualized ROI increase up to 72.25%!



If you decide to buy an EA, coded in accordance with the strategy and used for the test, or to make any amendments to the original strategy rules – please, feel free to contact us.

Our company specializes on automated trading systems and trading indicators development for the most popular trading platforms, such as MetaTrader 4/5, NinjaTrader 7/8 and cTrader.

If you need your own automated trading software designed based on your individual requirements, make a request for a free consultation with our team of professional programmers and find out the cost and terms of your project development.

More detailed info about our services for particular trading platform you can get at the following pages of our web-site:

MetaTrader 4/5 https://www.nordman-algorithms.com/metatrader-programming
NinjaTrader https://www.nordman-algorithms.com/ninjatrader-programming
cTrader https://www.nordman-algorithms.com/ctrader-programming

NORDMAN ALGORITHMS

TRADING SOFTWARE DEVELOPMENT

With financial background, using excellent programming techniques, developing automated trading systems of a splendid quality that serve your investing purpose.

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RISK DISCLOSURE

Trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Please note, that testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.