Supertrend Settings: Comparing 10/3, 7/3, and 10/2 on NSE

Supertrend is a trend-following volatility indicator created by Olivier Seban. It calculates an upper and lower trailing band plotted directly over candlesticks, governed by two adjustable user parameters: the ATR period and the multiplier.

• ATR Period (Length): Determines how many historical candles are used to calculate the Average True Range (ATR), which measures current market volatility. A period of 10 calculates the average volatility over the last 10 candles, while 7 reacts to shorter-term spikes and 14 provides smoother smoothing.
• Multiplier: Sets how many ATR units away from the median price the trailing band is placed. A lower multiplier (such as 2) pulls the line closer to price, making the indicator flip signals rapidly. A higher multiplier (such as 3) gives price more breathing room, reducing false whipsaws but lagging on reversals.

Choosing proper supertrend settings is a balance between responsiveness and false signal reduction.

To determine whether parameter tuning can turn Supertrend into a profitable standalone trading system, we tested all 12 combinations (10/3, 7/3, 10/2, and 14/3 across 5-minute, 15-minute, and daily candles) over a 12-month period on 15 liquid NIFTY stocks. The account was ₹1,00,000 and each trade used 20% of it, with realistic Indian statutory costs and slippage included.

Here are the complete comparative results across all 12 test variants:

Switching candle sizes alters trade frequency and transaction costs dramatically. Review how the indicator behaved across timeframes:

Every trading YouTube channel or forum claims to have found the one Supertrend setting that always wins—frequently advertising combinations like 7/3 or 10/2. We tested all 12 common settings with every Indian trading charge included.

None of them wins on its own after charges, so when and where you use Supertrend matters more than the numbers. Adjusting the multiplier from 3 to 2 merely increased trading frequency, which generated more STT and brokerage friction. Lengthening the ATR period from 10 to 14 lagged price turns and missed explosive momentum.

There is no magic setting that makes an indicator profitable on its own. When price is caught in a range-bound market, Supertrend will flip back and forth, hitting stop losses repeatedly regardless of parameter configuration.

On 15-minute candles with the standard 10/3 setting, the system took 908 trades over 12 months. Raw price moves produced -₹1,800. However, cumulative transaction levies totaled ₹16,366, converting the strategy into an overall net loss of -₹21,246.

To trade successfully with Supertrend, do not trade raw indicator flips. Combine it with a higher-timeframe trend filter (such as only taking long signals when daily price is above the 200 EMA) or use it solely as a trailing stop loss on high-conviction breakout trades.