Trading Strategies

Parabolic SAR Strategy | Forex Trading Strategies

2

Parabolic SAR Strategy | Forex Trading Strategies

Parabolic SAR strategy  – is a fairly risky system that is based on direct signals Parabolic SAR starategy, showing levels of interrupt and reverse.

Characteristics of this Parabolic SAR Strategy

  1. This strategy is easy to follow.
  2. Only one standard indicator is used.
  3. The entry and exit conditions are given by the indicator.
  4. Delay indicator.
  5. Very risky and not always effective.

Strategy Set

# All currency pairs and timeframe should work.

# Parabolic SAR indicator add to the chart, put your step (step) 0.5 and maximum 0.2.

Entry conditions

  1. Enter Long position when the price connect the indicator from below and change its direction.
  2. Enter Short position when the price connect the indicator from above and change its direction

Exit conditions

Set stop-loss directly at the indicator level, higher than the price for shorter and lower price for long positions. Adjust stop-loss with each new bar. Take-profit should be set to the same value as the stop-loss but you should not adjust it.

Example

Parabolic SAR Strategy | Forex Trading Strategies

As you can see in the chart above example, there are five points of entry and exit:

  1. The first is bearish and goes to a Take-Profit.
  2. The second is long and also is closed by the TP.
  3. The following is bearish again and reaches the TP pretty fast.
  4. Bullish operation that reaches its target in just two candles.
  5. Another short operation that slowly progresses to the level of Take Profit.

Judging from the above it is easy to conclude that short and long positions always follow one another in this strategy. You can also see that, despite the Take Profit helps keep many operations in green, also prevents positions offer us their full potential.

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Saimon Akash

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