Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Optimized Super Trend Trading System and FAQ

1 min read


 
I would like each and everyone to go thro the nature of SuperTrend Optimized trading system

– To be honest the trading system accuracy is currently at 42% means out of 100 trades only 42 trades are profitable.

Then how does your wealth is created?
It created with discipline and proper money management to catch those 42% of Winning Trades and Exiting properly at Stop Loss Hits.

What is the maximum continious losses the trading system can yield?
Since 2010 after backtesting with 5min data it is inferred that till to date 9 consecuitve losses had occured. Refer with Bactest results.

What is the Best Paramters to fine tune the system to eliminate more whipsaws?
Optimized Parameters are Multiplier =2 and ATR=11. However the default values of trading system are Multiplier =3 and ATR=10.

For Which Instrument the Trading System is Optimized?
The Trading system is optimized for 5min Nifty Futures charts

Can i trade with Any other stocks/indices?
Stricly No. As the Trading system is optimized for 5min Nifty future charts only.

How to Enter and Exit?

Entry should be based on the completion of the close of 5min Bar Candle. Trade should be executed with 5secs once the 5min candle complete. Trade should not be executed before the completion of 5min bars.

How many Nifty Future Lots is required to Trade the Trading system?
2 Lots (100 shares) of Nifty at any trades. Size of the trade should not vary throughout the trading system and it is fixed

Can i see this charts live?
Yes you can observe the charts live amibroker charts for 5min nifty futures and bank nifty from tommorow onwards

Can i trade using the live Buy or Sell indicator?
Charts shown in marketcalls is to study the nature of the trading system to improve your knowledge on trading system. If you are trading based on these buy and sell signals then do it at your own risk. marketcalls wont be responsible for the losses incurred.

Backtest Results
Super Trend Optimized Backtest Results from 1st Jan 2010 – 25th March 2012

Download the Amibroker AFL code
Download Super Trend Optimized AFL code for 5min Charts

For Amibroker 5.2 and older version users
Super Trend Optimized Older Version AFL Code

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

What is QuantZilla?

Quantzilla is 75+ hours of code mentoring program designed for noncoders who want to learn the coding program right from designing indicators, scanners, trading...
Rajandran R
58 sec read

Things to Consider While Building a Bracket Order Execution…

Building a Bracket Order Strategy is the most demanded request we got from most of the algomojo traders. This article explains the list of...
Rajandran R
12 min read

PlaceOrder – Multi Broker Exectuion Code Snippets for Amibroker

This tutorial explains how to build a button trading right from scratch and with a click of a button how you can send orders...
Rajandran R
7 min read

47 Replies to “Optimized Super Trend Trading System and FAQ”

  1. Hello Rajandran… its good that you have explained the stuff out here… thanks for your efforts & as always viewers of market calls will like it with the right & timely info… good night

  2. @Sandeep : You can use any combination. The Best among the parameters is ATR=11, Multiplier=2 after backtesting for 2.4years of intraday data. Try backtesting and discover the best results.

  3. Sir,

    The presentation is in Candle stick format.

    Can we change it to the Bar form(OHLC)?

    Sam

  4. rajandran,
    OHLC values in LH Top corner in Red are difficult to read. Can you pls change color too white.
    Also at bottom on Xaxis can you plot time?
    I think it can be done using settings. But don’t know how to do ? So better if u can incorporate it in code only.

  5. @Arjun

    As the background settings are in Black color you are not able to read the x-axis and price levels. So goto
    Tools->Preferences->Color and change the settings of the color of your interest

  6. multiplier or factor. any way in nifty it is working satisfactory with 15 min in previous one . may be usefull with also high lequid scrips like today reliance has a good buy signal at initial hr

  7. Dear Rajandran, after you tweaked it to other values, today it avoided at least one possible whipsaw & kalyan’s point was right that we can try using this for other liquid stocks but we need your guidance as you strictly told this for nifty fut only.

  8. HI RAJENDRAN
    can u please help me with the afl code for scanning gaps..
    for gap up
    filter=previous candle close < open of preceding candle..this is in common language…,

    can u pls give afl code for this
    thank you

  9. @Kalyan and Shaggy Boo

    I admire your views. Let me rethink again. Let check once again whether to go with 5min charts or with 15min charts.

    Things to remember

    – 15min charts will have more per trade risk than 5min charts
    -15min charts will have equal amount of noise when compared to 5min charts.
    -15min charts profits will be reduced when compared to 5min charts
    -15min charts winning ratio will be slightly higher when compared to 5min charts
    -No chances of day trading is the trend is strong i.e if trend remains for a prolong period as i consider 15min timeframe as purely positional trades.

    Let me analyse the strategy again and let you know whether to opt for 5min or 15min charts.

  10. use 15 min chart or higher , in my opinion to reduce the risk of low quality data(where tick loss is greater) and for better understanding of trend. me still not so expert to diferentiate between 5,15 and 30.

    one of my strateji was(still use), chek first the candle is just below or abv(just crossed) the 20 sma and at the same time or latter give buy or sell signal in 5 or 15 min.
    it has also 50 percent sucess. any way if u can make a system with it

  11. use 15 min chart or higher , in my opinion to reduce the risk of low quality data(where tick loss is greater) and for better understanding of trend. me still not so expert to diferentiate between 5,15 and 30.

    one of my strateji was(still use), chek first the candle is just below or abv(just crossed) the 20 sma in hourly chart and at the same time or latter give buy or sell signal in 5 or 15 min.
    it has also 50 percent sucess. any way if u can make a system with it

  12. Dear Rajandran thanks for the constant efforts u r putting in making us newbies save ourselves in market. I just wanna make u one request: Can u plz give the corresponding MT4 indicator.
    Thnaks

  13. @THULASI RAM

    In the mean while you can log in to buzzingstocks.com and use their live screens for gap and shoot up/down, price volume breakout and others. you have to register for free. its use full for me & you can give a try.

  14. Guys, before you trade on this system, be sure to backtest using the correct price arrays , in this case just put Buyprice=sellprice=coverprice=shortprice=close; in your formula and make sure its giving you expected results.

  15. Dear Mr. Rajandran,

    How abt. the strategy of buy / sell on Guppy’s Count back Trailing Stop Loss system on hourly chart for Nifty Future ?
    Kindly advise with yr comment.

    Thanks

    Soumen Seal // Kolkata

  16. I did back testing of Super trend Indiactor with BNFutures on 15 min Time frame upto 22/5 day end. Both backtest trades and chart display trades do not match.
    Trade Date Price Ex. date Ex. Price % chg Profit % Profit Contracts
    Long 18/05/2012 13:14 9105.15 22/05/2012 09:29 9390 3.13% 13962.3 23.59% 50
    Open Short 22/05/2012 09:29 9390 22/05/2012 15:29 9175 -2.29% 10468.74 17.15% 50
    But chart display shows
    no trade on 22/5/12 09:59 but on 21/5/12 15:29.
    I do not know how to post chart here. Hence only I am giving data.
    Why this should happen? how to make both chart back test show identical trades.
    If any info required from me, I will be too glad to give.

  17. I did back test with Super Trend indicator on BNF 15 min chart. Both trades in back test and Chart do not match.
    Trades as per back test
    Long 18/05/2012 13:14 9105.15 22/05/2012 09:29 9390 3.13% 13962.3 23.59% 50
    Open Short 22/05/2012 09:29 9390 22/05/2012 15:29 9175 -2.29% 10468.74 17.15% 50
    In chart trade is at 21/5/12 15:29 only. Chart given below.
    How to make chart and backtest show same trades.

  18. HI RAJENDRAN ,

    I WOULD TO SHARE MY STRATEGY HERE I USE ATR LINE 4 WITH 150 PERIODS & WHAT

    DO I DO IS I AVG A SAME QTY IF IT COMES NEAR SL OK BUT I JUST DO A TRICK WITH IT I WILL PUT SL A BIT

    BIGGER THAN WHAT LINE SHOWS IT A “OUT OF THE WAY ” STRATEGY i. g. 25/05/12 I SOLD SILVER @

    54200 SELL WAS MUCH LOWER BUT I USE 25 30 SMA TO FIND RETRACEMENT THEN IT WENT TO

    54471 SL WAS 54450 {ON CLOSING OF BAR} SO I SOLD SAME QTY @ 54425 & EXITED @ 54200 WITH

    LITTLE BIT OF PROFIT INSTED OF GETTING STOPPED OUT SO MY THING IS IF YOU TRADE WITH SOME

    INNOVATION WILL SURELY GET A HUGE PROFIT WITH THIS CODE TOO

  19. Hi Rajendran,

    Can this code be optimized so I can use it for EOD quotes of other markets? or are there any another system that I can use?

    Thanks in advance

  20. hi sirji

    u r the best pls put atlist 50 stocks for nifty. but whatever v get that very very good in this type of market. there is no such trend in any stocks but u r the best. Atlist v protect our capital wht ever market with this system

    thanks alot sir ji

  21. Rajandran, pls pls pls help us to backtest
    I want to backtest over various TF and Bank NF…In fact i am able to generate report showing trades. But it’s not showing profit calculations.

  22. Thanks Rajandran.

    Would anyone be able to help me on initial parameters that could work for EOD quotes? I am planning to buy/sell at Open when the signal comes out.

    That would be great help.

    Thanks in advance.

  23. sir i am trading nickel and copper with supertrend afl kindly give your sugession for factor and atr setting for 5 min chart

  24. Hi rajenderan, can u post 15/5 data for silver/nifty/gold so that i can do the back test, presently i am not an active trader, and i dont have any source to pull data.

  25. Sir,is there any modificaion in afl so that we can get email alerts on mentioned mail id as per buy sell conditions.

  26. Hi, first time I am visiting your site. first of all I am really fascinated by the way you are offering the solutions to the needy. I have downloaded the •Non Repainting – Trend Magic – Amibroker AFL code
    but it is not functioning my ami software. will you please mail the afl code for the same. withy regards remesh

  27. is this s/w gives a alarm sound whn a call generated in perticular scrip. can we check-out for open interest in graph form. Rs.2500/- for one time registration or what? pls explain it? Thanks a lot.

  28. Hi Sir,
    Thank very much for ur service to the people and i am very happy after using ur formula
    and i am using the same for silver too its also working excellent, still can u suggest me any changes in ATR & FACTOR for SILVER? kindly reply.
    Thank u

  29. Mr. Raj,
    Being a novice trader, Been a huge fan of this form since few days… Continue with the noble work you are doing…But I have some thing to ask…. In 2011 backtest the profit table is showing 107% return ( http://www.marketcalls.in/wp-content/uploads/2012/05/Super%20Trend%20Backtest-20120509211153989/charts.html )………… I have analysed that in 2011 total 1331 (inclusive buy and sell) trades were carried on….. So brokerage amounts to rs 266200/- (rs 1 lakh capital, and rs.200 per leg brokerage)…. so in my estimate there would be a huge loss wiping off all the trading capital…. Pls clarify if all my fears are correct…
    I have one more request to make please upload supertrend back test results from 1st Jan 2010 to 31st march 2014 with 200 per leg assumed brokerage…. so that we can get real estimate of actual returns…..
    Caveat: Being a novice trader i might be totally wrong about the aforemoted matter
    Regards
    Tridib

    1. Hi,

      This is a very old article. I had mailed your the New Backtest reports starting from 2009 to till date includes brokerage and spreads into the backtest results. Hope that solves the problem.

  30. hi rajandran i am intresting in trading crudeoil what is the optimized combination atr=? and multiplier=?

  31. Rajendran Sir,

    Whipsaws in any trend following system is part and parcel of the trading. Whipsaws can not be avoided. Generally market trends in 30 percent times and trades in range 70 percent time. So basically win loss ratio will be 30:70 for any trend following system including supertrend. If this system is giving winning ratio of 40 percent, no doubt it is a good system. Now the question arises how to earn with less than 50 percent win ratio. Incremental risk is an answer. Suppose your capacity of trading is with 4 lots. Start with one lot. If win again start with one lot. If lose add one lot after two consecutive losses. So that till 8 consecutive. Losses you will reach to 4 lots. Now don’t add further. The idea is when u catch a right trend you will ride the trend with more number of lots than losses. Back test this and if you want to trade bank nifty with 4 lots keep margin of 5 lacs. After win start with 1 lot. Can you back test this strategy and send report on my email id?

  32. Hi Rajendran,

    The supertrend system looks very interesting. You have referenced backtesting results from 2010 till date….Are you in a position to share that information? or is it anywhere on the site?

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More