What are the exit and stop-loss rules for Supertrend and VWAP trend?

Sells when the trend flips: The Supertrend turning back down is the exit that should do most of the work. Stops a few ATRs below the entry: Wide enough that ordinary noise does not trigger it. Earlier versions used a stop inside the Supertrend's own band, and it decided every trade. Takes a target if one is reached first: Two to four percent, by version. Closes everything by 15:15: An intraday position must be closed before the market shuts, and the strategy does it itself rather than leaving it to the broker's auto square-off.

Supertrend + VWAP + ADX Intraday Strategy for NSE Stocks — Rules & Backtest

What it does

Some days a stock picks a direction in the morning and keeps it. This strategy tries to ride those days and stay out of the others. It asks three questions before buying, and if any answer is no, it waits.

On a choppy day it may not trade at all. That is not a fault. A strategy that trades every day pays brokerage every day.

How it makes money

First, the Supertrend line has to flip from above the price to below it, which happens when the stock turns up. Second, the price has to be above the day's VWAP, which means buyers have had the upper hand since the open. Third, the ADX has to be above a threshold, which means the move has strength rather than being a wobble.

It sells when the Supertrend flips back, which is its main exit. A stop a little below the entry and a target a little above it bound the trade in between, and everything is closed by 15:15 whatever has happened.

A worked example, in rupees

Illustrative. ₹1,00,000 account, balanced version, a stock at ₹1,000.

10:05 entry: ₹1,004 as the Supertrend flips up above VWAP with ADX at 24
Position: 8% of the account, about ₹8,000, 8 shares
Stop: ₹989, 1.5% below
Target: ₹1,034, 3% above
13:40 exit: ₹1,018 as the Supertrend flips back down
Result: ₹112 before charges, about 0.1% of the account

Intraday trades are small, and brokerage is not. The hard truth from our own tests is that the long-only intraday families lost money over the test window, about half of it to charges, and none is published yet. The guide is here so you understand the idea, not to sell it.

When it does well, and when it hurts

Does well when

Trend days: a stock opens, picks a direction and holds it into the afternoon.
Rising markets. Long only, so a falling market gives it nothing to do.

Hurts when

Choppy days with several false turns. Each flip can cost a stop.
Afternoons. A move that starts at 14:00 has an hour to work before the square-off.

What the robot does when a trade goes wrong

These are the real rules, in the order the strategy checks them. Nothing here needs you to be watching.

1
Sells when the trend flips
The Supertrend turning back down is the exit that should do most of the work.
2
Stops a few ATRs below the entry
Wide enough that ordinary noise does not trigger it. Earlier versions used a stop inside the Supertrend's own band, and it decided every trade.
3
Takes a target if one is reached first
Two to four percent, by version.
4
Closes everything by 15:15
An intraday position must be closed before the market shuts, and the strategy does it itself rather than leaving it to the broker's auto square-off.

Adjustments, and why it does not make them

The usual intraday adjustment is to re-enter after a stop when the trend resumes. An early version of this did that on every bar the trend held, placing more than one order a bar and paying brokerage on each. It now enters only on the flip itself.

It never adds to a position and never moves a stop further away.

The three versions

Each strategy comes as conservative, balanced and aggressive. They share the idea and differ in how much they risk once in.

Setting	Conservative	Balanced	Aggressive
Companies	3	5	6
Trend strength needed (ADX above)	25	20	18
Stop below entry	1.25%	1.5%	2%
Target above entry	2.5%	3%	4%
Position size	5% of the account	8%	12%

Plain-English Rule Sheet (Balanced Preset)Every highlighted number is editable

Entry: When 5m Supertrend(10, 3) flips up, price is above VWAP, and ADX(14) is above 20

Action: Buy intraday (MIS) allocating 8% of account equity

Exits: Sell on Supertrend flip down, stop at 1.5%, target at 3%, or square off at 15:15

Want a stricter filter, a different stop, or your own stock list? Open a working copy in the builder and run a backtest.

Customize this rule

Risks you should know

Charges. Several trades a day at a few tenths of a percent each is a headwind the strategy has to beat before it earns anything.
Not yet published. It has not cleared our quality gate, which needs a positive result after costs over at least 20 trades.
Intraday only, so no overnight gaps, but also no time for a trade to work beyond the day.

The jargon, explained

Supertrend: A line that sits below price in an uptrend and above it in a downtrend, and flips when price crosses it. The flip is the signal.
VWAP: The day's average price, weighted by how much traded at each level. Price above VWAP means buyers have had the upper hand today.
ADX: A number from 0 to 100 that says how strongly price is trending, in either direction. Below 20 is drifting sideways; above 25 is a trend worth following.
ATR: The typical size of one bar's move. Stops in these strategies are set a few ATRs away so ordinary noise does not trigger them.
Intraday (MIS): A position the broker requires you to close the same day. It allows larger sizes and, for stocks, is the only way to sell short.
Square-off: Closing a position. These strategies square everything off by 15:15 so nothing is held into the next day.