Adaptive Supertrend with Dynamic Optimization [EdgeTerminal]

7小时前

The Enhanced Adaptive Supertrend represents a significant evolution of the traditional Supertrend indicator, incorporating advanced mathematical optimization, dynamic volatility adjustment, intelligent signal filtering, reduced noise and false positives.

Key Features

• Dynamic volatility-adjusted bands
  
• Self-optimizing multiplier
  
• Intelligent signal filtering system
  
• Cooldown period to prevent signal clustering
  
• Clear buy/sell signals with optimal positioning
  
• Smooth trend visualization
  
• RSI and MACD integration for confirmation
  
• Performance-based optimization
  

Dynamic Band Calculation

Pine Script®

Dynamic Band Calculation automatically adapts to market volatility, generates wider bands in volatile periods, reducing false signals. It also generates tighter bands in stable periods, capturing smaller moves and smooth transitions between different volatility regimes.

Momentum Integration

Pine Script®

Momentum Integration prevents false signals in extreme conditions, It adjusts dynamic bands based on market momentum, improves trend confirmation in strong moves and reduces whipsaws during consolidations.

Improved signals

There are a few systems to generate better signals, allowing for generally faster signals compared to original supertrend, such as:

• Enforced cooldown period between signals
  
• Prevents signal clustering
  
• Clearer entry/exit points
  
• Reduced false signals during choppy markets
  

Performance Optimization

This script implements a Sharpe ratio-inspired optimization algorithm to balance returns against risk, penalize large drawdowns, adapt parameters in real-time and improve risk-adjusted performance

Pine Script®

Parameter Settings

ATR Period: 10 (default) - adjust based on timeframe
Initial Multiplier: 3.0 (default) - will self-optimize
Optimization Period: 50 (default) - longer periods for more stability
Smoothing Period: 3 (default) - adjust for signal smoothness

Best Practices

1. Use on multiple timeframes for confirmation
   
2. Allow the optimization process to run for at least 50 bars
   
3. Monitor the adaptive multiplier for trend strength indication
   
4. Consider RSI and MACD alignment for stronger signals