Why the Supertrend is the Ultimate Crypto Trend Following Indicator

What is the Supertrend?

It’s not much different from a moving average except it accounts for volatility using the ATR (average true range) of a given price candle.

super trend vs traditional MAs

Why Use the Supertrend in Trading Crypto

Even as it craters in value from 3 trillion to less than 1 trillion, crypto is still an asymmetrically risk-positive trending asset.

Supertrend vs MA

Limitations of the Supertrend

The supertrend settings are subjective and the results random. Depending on when you start your backtest, and when you end it, your profitability will vary widely. In addition, the curve fitting which can occur by trying to find the perfect settings will surely lead to underperformance in a forward test environment. The best settings are a mirage, once you get that into your mind, the indicator becomes far more useful.

How to Profit from the Supertrend

Ok now that all the dirty boring stuff is out of the way. How can you make money trading with the supertrend?

The Twitter Bot Alerts followers to fresh trend change each day at 7:00 UTC
  1. Deep RSI Pullback
  2. Price remains above daily supertrend
  3. Price re-enters the bullish supertrend

Portfolio Management When Using the Supertrend for Entries

Since the Supertrend requires you to accept a larger amount of volatility it’s important to position size accordingly. Don’t ever go all in on a single signal you take.

Road Map

2023 1st Half

Second Quarter 2023

Web3 login to trade dexes on multiple chains

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