Premium/Discount Zones strategyvsSuperTrend + VFI confluence strategy
Premium/Discount Zones strategy: Buy the discount extreme, fade the premium extreme, exit at equilibrium. Β· SuperTrend + VFI confluence strategy: SuperTrend regime flip filtered by Volume Flow direction β only trade flips backed by volume.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
SuperTrend + VFI confluence strategy
SuperTrend regime flip filtered by Volume Flow direction β only trade flips backed by volume.
Indicators
- Premium/Discount Zones (lookback 200)
- SuperTrend (ATR 10, factor 3.0)
- VFI
Timeframes
Bias
Long & short
Long & short
Market fit
Range-bound
Strong directional trends
Entry rules
- Long when price is inside the discount zone (current_zone = +1).
- Short when price is inside the premium zone (current_zone = -1).
- Long when SuperTrend flips bullish AND VFI is positive.
- Short when SuperTrend flips bearish AND VFI is negative.
Exit rules
- Position closes when price returns to equilibrium.
- 4% trailing stop, 5-bar cooldown.
- Any SuperTrend flip closes the trade.
- 4% trailing stop, 3-bar cooldown.
Expected behavior
Range trader β fits balanced markets where extremes get bought / faded back to mid. Stacks losses in strong trends that camp at one extreme for many bars.
Cleaner than vanilla SuperTrend β the volume filter cuts the low-conviction flips that fire in chop. Fewer trades, smoother equity curve, occasional missed early-trend entries when volume lags price.
Complexity
Which one is right for you?
Derived from the bias, timeframe and indicator profile of each strategy β not a back-test forecast.
When to pick Premium/Discount Zones strategy
- You expect range-bound β the thesis is "Buy the discount extreme, fade the premium extreme, exit at equilibrium."
- You want a long & short bot on 1hβ1d candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Premium/Discount Zones (lookback 200)).
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
When to pick SuperTrend + VFI confluence strategy
- You expect strong directional trends β the thesis is "SuperTrend regime flip filtered by Volume Flow direction β only trade flips backed by volume."
- You want a long & short bot on 1hβ1d candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (SuperTrend (ATR 10, factor 3.0), VFI).
SuperTrend regime flip filtered by Volume Flow direction β only trade flips backed by volume.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
SuperTrend + VFI confluence strategy
SuperTrend regime flip filtered by Volume Flow direction β only trade flips backed by volume.
Related comparisons
Other pairings that involve one of these strategies.
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