Somebody sent me an image of an indicator that he says has a 90%+ win rate. I want to back test it, but can’t figure out what it’s doing. There’s a 20 SMA line that seems irrelevant and some form of channel that when it crosses, it swaps the signal. I can see that if the candle is in the opposite direction, it doesn’t move, but if a candle is in the signal direction, what is it setting it to? Any ideas?
@chesterjohn, The Indictors on this chart are the SuperTrend Indicator and a Simple 20 Moving Average Slope (Coloured)…
How Supertrend is calculated?
The SuperTrend indicator is calculated by using the ATR to offset the indicator from the average price. When the price touches the SuperTrend line it turns over to the other direction.
The Coloured SMA20 appears to being used as a confirmation Indicator… I posted a thread years ago about using this Indicator as opposed to confusing MA Crossover Strategies… (See Below)
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Thanks. Somebody has already written it as a free download, so saves me the trouble. I bet the win rate will be poor, but as always, I expect it will depend on exit criteria being the key
Looks like it works reasonably well in normal markets. Big sell offs seem to kill it like Covid, Ukraine war. But ignoring those it’s got a good result
This channel back tested a variation on the Supertrend…
Another concept to improve the odds…
It looks like one of these late indicators. Doesn’t look that great to me - usual problem of it only being right about half the time. If i buy in the green it might go down, if u sell in the red might go up. Bit like parabolic SAR or Ichi- cloud pattern thingy.