Super Trend is a simple indicator that has been widely used for intraday trading. It consists of two parameters: period and multiplier. The default setup of the two parameters are 10 for average true range (ATR) or trading period, and 3 for its multiplier.
Average true range is the average of true ranges during a specific time period. The true range indicator is calculated by taking the greatest from the following: current high minus the current low, the absolute value of the current high less the previous close, and the absolute value of the current low less the previous close. ATR as a moving average of true ranges captures the price volatility over that certain period. Usually an underlying asset undergoing a high level of volatility has a higher ATR, and a lower volatility asset possesses a lower ATR.
(more information about ATR, please go to https://www.investopedia.com/terms/a/atr.asp)
Intraday traders tend to use the super trend indicator as a buy or sell signal in a trending market. A buy signal is generated when the super trend closes above the closing price, and a sell signal is triggered when it closes below the closing price. However, the Supertrend indicator is more suitable for the trend moving market, and it could fail in a sideways-moving market.
(Supertrend strategy from TradingView: https://www.tradingview.com/script/P5Gu6F8k/)
Introduction of Bonfida’s Super Trend Strategy Bots
On the explore page, we have created four super trend bots of BTC, ETH, SRM and FIDA.
(PineScript could be found here: https://www.tradingview.com/script/P5Gu6F8k/)
Initial deposits were USDC, when those pools were created.
When the super trend indicator tips above the closing price, the pool will use all its assets to buy the base currency (BTC/ETH/SRM/FIDA).
When the super trend indicator slips below the closing price , the pool will sell all of its base currency (BTC/ETH/SRM/FIDA).
The order size is 100% of what is available in the pool.
Now let’s take a close look at the SRM Super Trend bot
The automated trading bot was launched in early March, and currently 1 pool token = 1.329 USDC + 0.0021 SRM. When the pool was created, 1 pool token = 1 USDC.
Inception performance is calculated by (current value of LP token — initial value of LP token)/ initial value of LP token. The number stands at 34.19% at the moment.
If you are interested in this strategy, you can directly deposit tokens into the pool. (https://bots.bonfida.org/#/pool/8uSTbreQ9ywGw3AYA7yP74KBsa78Y3wEEiDfnBKDFss)
Also, you can refer to the below link for all on-chain transactions of the pool https://explorer.solana.com/address/228wPzdwJggUwTXD2c7zTNmLnXra4PzVQ2gXunmVFKJL
For those who want to build their own bots, and are interested in using Trading View indicators, please kindly refer to our video tutorial and integrate those indicators with your bots. https://www.youtube.com/watch?v=6BFmyi0qnEI&t=1s