MTF Supertrend [Trading Nerd]

This trading strategy uses two exponential moving averages (EMAs), a fast one (9 periods) and a slow one (21 periods), to determine entry and exit points based on their crossover. A buy order is placed when the fast EMA crosses above the slow EMA, and the position is closed when the fast EMA crosses back under the slow EMA.

To trade this strategy manually on TradingView:

• Add two EMA indicators to your chart by selecting 'Indicators' and finding 'Moving Average Exponential'. Set one EMA period to 9 and the other to 21.
• Enter a long position when the 9-period EMA (the faster one) crosses above the 21-period EMA (the slower one).
• Exit the position when the 9-period EMA crosses back below the 21-period EMA.

Optimizing the MTF Supertrend [Trading Nerd] strategy for manual trading involves refining the entry and exit conditions, employing additional technical analysis tools for better signal confirmation, and integrating risk management techniques. The following steps outline an improvement plan:

• Refine Entries: Supplement the basic Supertrend signals with candlestick pattern analysis. For example, enter a trade only if a bullish or bearish candlestick pattern confirms the Supertrend signal on the current timeframe. This additional filter can help avoid false breakouts.
• Confirm Trend Direction: Validate the higher timeframe (TF) Supertrend's direction using a Moving Average Convergence Divergence (MACD) indicator. A positive MACD histogram can confirm an uptrend for long entries, while a negative histogram confirms a downtrend for short entries, thus improving the reliability of the Supertrend.
• Enhance Exits: Instead of using a trailing stop based on the current TF Supertrend, manually adjust stop loss levels based on recent price action, such as support or resistance levels, or swing highs and lows. This method can potentially lock in more profits and better protect against market volatility.
• Incorporate Volume Analysis: Include volume as a condition for entry and exit. High trading volumes confirming a Supertrend signal could increase the probability of a successful trade, while decreasing volumes might prompt an exit, signalling a weakening trend.
• Employ Price Action: Dive deeper into price action analysis by identifying key S/R (support/resistance) zones, pivot points, and classical chart patterns, which can all indicate potential trade setups when they coincide with Supertrend signals.
• Risk Management: To manage risk manually, determine a fixed percentage of total capital to be risked per trade and adjust position sizes accordingly. Moreover, use a risk-reward ratio of at least 1:2 to ensure profitable trades compensate for any losses.
• Tailor To Market Conditions: Adjust the strategy parameters such as Supertrend settings, stop loss levels, and position sizes for different market conditions. Volatile markets might require wider stops and smaller positions, while a trending market might allow for tighter stops and larger positions.
• Schedule Trading Times: Trade during the most active market hours or specific sessions relevant to the traded asset to capitalize on higher liquidity and better price movement.

The MTF Supertrend strategy caters to traders who prefer a technical, trend-following approach, searching for clear entry and exit points within varying market conditions. It's particularly suitable for:

• Swing Traders: With its reliance on higher timeframe trends to dictate market direction, this strategy is well-aligned with the swing trading style, targeting gains within a medium-term horizon.
• Day Traders: Those focusing on intraday trading can benefit from the current timeframe entry signals, given the non-repainting nature of the strategy, which allows for timely decision-making.
• Multitimeframe Analysts: Traders who integrate insights from multiple timeframes will find this strategy aligns with their analysis, providing a cohesive view of market trends.
• Disciplined Risk Managers: The presence of optional risk management features, such as custom trailing stop losses and compounds interest calculations, suits traders dedicated to strict capital preservation.

This strategy is versatile but particularly effective for individuals who value systematic, rules-based trading and are comfortable handling complex indicators and customizing their trading parameters.

• Strategy Essence: A technical, multi-timeframe trend-following system that uses higher TF Supertrend for trend direction and current TF Supertrend for trade entries.
• Manual Trading Approach: Involve additional indicators like EMA crossovers, adjust positions according to support/resistance levels, and integrate volume analysis for improved entry/exit decisions.
• Automated Trading: Scripts can facilitate immediate reaction to Supertrend changes, but manual oversight is recommended to account for nuances in market conditions.
• Alerts Utilization: Set TradingView alerts for Supertrend changes on multiple timeframes to enhance timely and effective manual trading without continuous chart monitoring.
• Customization for Improvement: Fine-tune entry signals with price action patterns and confirm trends via MACD for better signal reliability.
• Risk Control: Apply fixed percentage capital risk per trade and maintain a desirable risk-reward ratio to balance potential gains against losses.
• Adaptation to Market Variability: Adjust Supertrend settings, stop-loss levels, and position sizes based on the current market volatility and trends.
• Active Hours: Trade during high liquidity times for the specific asset class to capitalize on better price movements.