Supertrend Direction Flip: how the strategy works
Supertrend Direction Flip is a trend following strategy in the SmartPaperDesk library. See exactly when it enters and exits, and when it tends to struggle.
Trend following Basic Free plan · हिन्दी में पढ़ें
What it does
It reads daily prices. It enters a position when all of the entry conditions below is true, and it leaves when its exit rule, its stop-loss or its time limit is reached.
Entry rule
All of these must be true on the same day:
- Supertrend (10, 3) turns bullish.
Exit rule
It exits when all of these are true:
- Supertrend (10, 3) turns bearish.
It also exits if price falls 12% below the entry (the stop-loss), or after 180 days at most.
The idea behind it
Trend rules wait for the trend to show itself, usually with moving averages or a trend indicator, and then ride it instead of trying to catch the very bottom.
The bet it makes
It bets that a move already in motion keeps going for a while.
When it tends to struggle
In sideways, choppy markets price keeps crossing back and forth, so trend rules give many false starts. They also enter late and can give back part of a move before they exit.
Test it on paper
You can run this strategy on historical, delayed daily data with estimated charges on the free plan. No real money and no real orders are involved.
Questions people ask
Is Supertrend Direction Flip a buy signal?
No. It is a rule that describes a setup and has to be tested. A rule that fits one period can fail in another, so check it over a long period with costs included.
What does Supertrend Direction Flip exit on?
Supertrend (10, 3) turns bearish. It also exits if price falls 12% below the entry (the stop-loss), or after 180 days at most.
Learn more
Similar strategies
SmartPaperDesk is an educational paper-trading tool. Strategy pages describe a rule only; they show no results and give no advice.
For educational purposes only. This is not investment advice. Past performance does not guarantee future results.