Supertrend + FVG Strategy by cruzer151
By cruzer151
Performance Metrics
- Author: cruzer151
- Symbol: CME_MINI:MNQ1!
- Timeframe: 1 minute
- Win Rate: 50.0%
- Profit Factor: 1.724
Description
Supertrend + FVG StrategyA trend-following strategy that pairs a classic Supertrend trailing stop with Fair Value Gap (FVG) entries for precision timing — built with a full risk management and safety toolkit for anyone looking to test or automate it.Core ConceptMost Supertrend implementations enter the instant the trend flips — which means buying/selling right into potential noise. This strategy instead uses Supertrend purely for trend direction and trailing stop, and waits for price to retrace back into a Fair Value Gap (a 3-candle imbalance) in that direction before entering. The idea: let the trend tell you which way to trade, let the FVG retest tell you when, rather than chasing the breakout candle itself.Entry LogicSupertrend establishes trend direction (configurable ATR period/multiplier)An FVG forms and price retraces into itEntry triggers only when the retest candle closes back in the trend's favorRecommended TimeframeTesting has shown solid results on 1-minute, 15-minute, and 30-minute charts — but not with the same settings carried across all three. Each timeframe needs its own tuning pass on ATR Multiplier, ADX threshold, and Displacement Multiplier; a config that works well on 15m will not automatically transfer to 1m or vice versa.Because the parameters are volatility-relative (ATR-scaled) and trend-strength is measured via ADX (a normalized, timeframe-agnostic indicator), the underlying logic itself is not timeframe-specific — it's the specific numbers that need re-tuning per timeframe.Important caveat on lower timeframes: 1-minute testing to date has been over a shorter window than the multi-month testing done on 15m. Strong short-window results are encouraging but not yet confirmed to the same degree — validate over a longer, separate time period before relying on any single timeframe's numbers.Quality Filters (all independently toggleable)ADX trend-strength filter — pauses entries when the market isn't actually trending, the single biggest lever against whipsaw losses in choppy conditionsDisplacement filter — requires the retest candle to have genuine range/conviction, not just a marginal closeOne trade per trend leg — blocks repeated re-entries within the same Supertrend directionATR-relative FVG size filter — ignores tiny, low-quality gapsHigher-timeframe trend agreement — checks a higher timeframe's EMA trend before allowing a signalVolume confirmation — requires above-average volume on the retest candleRisk ManagementTrailing stop via the Supertrend line — toggleable on/off in favor of a fixed stopOptional breakeven stop-move once a trade reaches a set R-multipleOptional fixed Risk:Reward target (default: ride until trend flip, no fixed ceiling)Position sizing: fixed contracts, or risk a fixed % of account equity per trade (auto-scales size to stop distance)Safety circuit breakers: auto-pause after N consecutive losses and/or a max daily loss %, both with an on-chart status indicatorVisualsFixed-size trade box on every entry showing the risk zone, profit zone, entry line, and TP1/TP2/TP3 reference levels — built for clean manual reading regardless of timeframe or how long a trade runs.AutomationEntries/exits carry structured JSON alert messages (action, quantity, price) ready for webhook-based automation (e.g. TradersPost).⚠️ DisclaimerThis is a technical trading tool, not financial advice. Past backtest performance does not guarantee future results — markets change regimes, and this strategy performs very differently in trending vs. choppy conditions by design. Always forward-test and validate on out-of-sample data before risking real capital. Commission and slippage are included in the backtest engine but should be adjusted to match your actual broker.