The Supertrend Indicator Backtested (opens in new tab)

In today’s article on algorithmic trading, we examine the Supertrend Indicator and backtest whether this popular trend-following tool lives up to its name\. The Supertrend is designed to identify the direction of the prevailing trend\. It plots a line either above or below price, depending on market direction and volatility\. The indicator is based on the Average True Range \(ATR\), which makes it responsive to changes in market volatility\. How the Supertrend Indicator Is Calculated The Supe...