The short answer
The default Supertrend setting is 10,3 (ATR period 10, multiplier 3). Gold traders also use 7,3, 10,2, 14,2 and a slower 20,4. On two years of hourly XAUUSD data with a $0.30 per ounce cost per trade, all five were slightly positive overall, but every one lost money in year 2. On daily data since 2015, the settings with a multiplier of 3 or 4 were positive and those with a multiplier of 2 lost.
So the honest answer to “best Supertrend setting for gold” is: on hourly charts, none we tested had a stable edge; on daily charts, a wider multiplier mattered more than the period.
What Supertrend measures
Supertrend is an ATR-based trailing line. Each bar it calculates the midpoint of the high and low, then adds and subtracts a multiple of ATR to get an upper and a lower band. In an uptrend the line follows the lower band and can only move up; in a downtrend it follows the upper band and can only move down. When the close crosses the line, Supertrend flips direction.
Because it is built on ATR, it adjusts to volatility automatically. Our lesson on ATR and Bollinger Bands for gold explains ATR itself.
The Supertrend settings gold traders use
| Setting | Typical use | Character |
|---|---|---|
| 10,3 | Default on most platforms | Balanced |
| 7,3 | Faster ATR, same distance | Reacts sooner to volatility changes |
| 10,2 | Intraday traders wanting earlier flips | Tight, flips often |
| 14,2 | Same tight distance, smoother ATR | Tight |
| 20,4 | Swing traders | Wide, few flips |
Why gold’s volatility changes things
Gold’s average daily range on COMEX futures went from about $34 in 2024 to $64 in 2025 and around $123 so far in 2026. Over our test window the hourly ATR(14) averaged $17.49. Because Supertrend scales with ATR, a 3× setting placed the line roughly $50 from the bar midpoint on an average hour in our window, and much further on volatile days. That self-adjustment is Supertrend’s main selling point. The weakness is timing: ATR expands after a big move has started, so the line widens just as a reversal can begin, and gives back more before it flips. You can check today’s ATR on our gold volatility tool.
We tested 5 Supertrend settings on 2 years of hourly gold data
How we tested. COMEX gold futures (GC=F) 1-hour bars from 30 October 2024 to 30 October 2026, 11,445 bars, plus daily bars from January 2015. Rule: always in the market; go long when Supertrend turns up (the close crosses above the line), go short when it turns down, reversing at the next bar’s open. Each trade is 1 ounce and pays $0.30 per ounce for spread and slippage. Results are in US dollars per ounce; maximum drawdown is the largest fall in closed-trade equity. Year 1 ends on 30 October 2025.
For context, holding gold gained about $1,194 an ounce in year 1 and about $14 in year 2, with a run to about $5,627 in January 2026 and a heavy fall in between.
Hourly (H1) results
| Setting | Trades | Win rate | Avg per trade | Profit factor | Net result | Max drawdown | Year 1 | Year 2 |
|---|---|---|---|---|---|---|---|---|
| Supertrend 7, 3 | 265 | 37.0% | +$1.62 | 1.06 | +$430 | $917 | +$734 | −$304 |
| Supertrend 10, 2 | 477 | 39.8% | +$1.29 | 1.07 | +$615 | $860 | +$923 | −$308 |
| Supertrend 10, 3 | 261 | 37.2% | +$2.43 | 1.09 | +$634 | $780 | +$857 | −$223 |
| Supertrend 14, 2 | 473 | 39.5% | +$1.23 | 1.06 | +$580 | $770 | +$1,014 | −$433 |
| Supertrend 20, 4 | 169 | 41.4% | +$3.94 | 1.11 | +$665 | $1,085 | +$882 | −$217 |
Daily (D1) results since 2015
| Setting | Trades | Win rate | Avg per trade | Profit factor | Net result | Max drawdown | 2015–20 | 2021–26 |
|---|---|---|---|---|---|---|---|---|
| Supertrend 7, 3 | 93 | 37.6% | +$13.64 | 1.41 | +$1,268 | $884 | +$230 | +$1,038 |
| Supertrend 10, 2 | 170 | 37.1% | −$4.30 | 0.88 | −$731 | $1,968 | −$231 | −$500 |
| Supertrend 10, 3 | 91 | 38.5% | +$9.83 | 1.27 | +$895 | $1,011 | +$261 | +$634 |
| Supertrend 14, 2 | 172 | 34.9% | −$2.23 | 0.93 | −$384 | $1,805 | −$208 | −$176 |
| Supertrend 20, 4 | 63 | 39.7% | +$14.77 | 1.34 | +$930 | $674 | +$61 | +$869 |
What the results say, in plain English
- The hourly edge was small and did not last. Profit factors of 1.06 to 1.11 are thin. More importantly, all five settings were positive in year 1 and negative in year 2. A rule that flips from profit to loss when the market changes character is not something to rely on.
- Longs carried everything. On H1, every setting made money on long trades and lost on shorts. In year 1, gold rose steadily, and an always-in-the-market trend tool mostly rode that rise. In year 2, gold swung hard both ways and the line kept flipping late.
- On daily data, the multiplier decided the result. Settings with a multiplier of 3 or 4 were positive in both halves; settings with a multiplier of 2 lost in both halves. On daily gold, 2 ATRs is simply too close: normal daily swings hit the line.
- The period mattered less. 7,3 and 10,3 behaved similarly; 10,2 and 14,2 behaved similarly.
- Compared with other trend tools, Supertrend was weaker on hourly gold than the Parabolic SAR settings and the Donchian breakout we tested, all under the same rules and costs.
How to use Supertrend on different timeframes
Scalping (M1 to M5). Supertrend on the scalping chart flips many times per session. If you use it, read it on M15 or H1 for direction and only take scalps in that direction. Calculate what each move and each spread is worth at your size with the gold pip calculator.
Intraday (M15 to H1). A 10,3 line is a clear visual trend map and a sensible trailing stop. Our results suggest it should not be the only entry reason. Combine it with a level or a session plan.
Swing (H4 to D1). Use a multiplier of 3 or more. On daily data our 7,3, 10,3 and 20,4 settings were positive in both halves. Expect long holds, few trades and large open swings.
A combination idea: Supertrend direction plus a Keltner breakout
Supertrend and Keltner Channels are both ATR-based, which makes them fit together neatly:
- Use the H4 Supertrend (10,3) to decide direction only.
- On H1, wait for a close outside the Keltner Channel in that direction, a sign of momentum.
- Put the stop on the other side of the H1 Supertrend line.
- Size the position from that stop with the position size calculator.
See how Keltner breakouts behaved on their own in our Keltner Channels test.
Common mistakes with Supertrend on gold
- Believing there is a “perfect” setting. Our five settings were within a few hundred dollars of each other on H1, and all lost in year 2.
- Using a multiplier of 2 on daily charts. In our test that lost money in both halves.
- Trading every flip in a range. Sideways weeks produce a run of small losses.
- Ignoring the size of the stop. On a volatile day the line can sit $60 or more from price on H1. Reduce lot size accordingly.
- Judging it on screenshots. Supertrend always looks perfect on a chart after the fact, because you see the trends and skim past the flips.
These results come from simple mechanical rules on past data and are not recommendations. Stop-and-reverse systems are always exposed to the market, including through news releases and weekend gaps.
Test it yourself
Pick the setting you use, write the rule (we used close-confirmed flips with a reversal at the next open), and test it on your broker’s XAUUSD data with your own spread. Split the period in two. If it worked in one half and not the other, as ours did, ask what changed in the market rather than reaching for a new setting. Our backtesting lesson explains what to log, and the gold indicator settings hub compares Supertrend with 11 other indicators.
Test it with other traders
Supertrend is easy to fall in love with on a chart. Inside the XAUUSD Global community, traders put settings like these through demo trading together and share the losing trades as well as the winners. The first month is free, then $19.99 a month.
Educational content only, not financial advice. Trading gold with leverage carries a high risk of loss.
Frequently asked questions
What is the best Supertrend setting for gold?
No setting stood out on hourly gold. All five we tested (7,3, 10,2, 10,3, 14,2 and 20,4) finished slightly positive over two years after a $0.30 per ounce cost, with profit factors between 1.06 and 1.11, but every one of them lost money in the second year. On daily data since 2015, the 7,3, 10,3 and 20,4 settings were positive and the 10,2 and 14,2 settings lost.
Is Supertrend 10,3 good for XAUUSD?
10,3 is the default on most platforms. On hourly gold it made $634 per ounce over 261 trades in two years: $857 in year 1 and a $223 loss in year 2. On daily data since 2015 it made $895 over 91 trades. It is a reasonable default, not a proven edge.
What do the two Supertrend numbers mean?
The first number is the ATR period and the second is the multiplier. Supertrend draws a line a set number of ATRs away from the middle of each bar. 10,3 means 3 times the 10-period ATR. A larger multiplier puts the line further away, so it flips less often.
Why did Supertrend lose money in year 2 on gold?
Year 2 of our test included a fast rally to about $5,627 and a sharp fall, with very large hourly swings. Supertrend flipped on many of those swings. Every setting lost money on short trades over the two years, and most of the year-1 profit came from long trades in a steady uptrend.
Which is better on gold, Supertrend or Parabolic SAR?
On hourly gold in our test, Parabolic SAR settings made considerably more and were positive in both years, while Supertrend was positive only in year 1. On daily data the ranking was mixed. Both are stop-and-reverse trend tools and both struggle in ranges.
Should I use a bigger Supertrend multiplier on gold?
On daily gold, multipliers of 3 and 4 were positive and multipliers of 2 lost money in our test. A tight multiplier puts the line inside normal daily noise, which on gold has grown a lot since 2024. On hourly charts the multiplier made less difference.
Sources and further reading
- CME Group — Gold futures overview — Contract specifications and trading hours for COMEX gold
- CFTC — Commitments of Traders — Weekly futures positioning, including gold
- Investor.gov — Stop order — How stop orders work, and their limits in fast markets
External sites are independent of XAUUSD Global. Check dates and data yourself.