Parabolic SAR pullback strategy
Hi my friends in FF.
I have always liked the Parabolic SAR and I believe it is really powerful. But because it always reverses, it's not a good idea to trade any given signal.
My idea is to find the trend and then wait for a SAR signal in that direction.
idea:
For the bears, the smoothed moving averages at 21,50,200 should line up. For a long time, the opposite was true.
Enter at the close of the signal candle.
- Recommended time range: 3m
3m is really good, less than 1m faster, less than 5m slower.
- Recommended pairing/instrument: US30
The Dow is a real trend and a good choice. Trading during the New York session, of course. Do not trade this for gold. Gold trading is more complicated
- TP, SL
This is something I really want to improve on. I use tp=50 points (1$ = 1 point us30), sl = 25 points. But using ATR seems good. Maybe someone should try it.
R:R of 2 is really useful here, otherwise I doubt it would have worked...
Why I'm posting this: Maybe we can improve it together and write an EA to test it.
Here is my manual backtest of about 40 trades:
I have always liked the Parabolic SAR and I believe it is really powerful. But because it always reverses, it's not a good idea to trade any given signal.
My idea is to find the trend and then wait for a SAR signal in that direction.
idea:
For the bears, the smoothed moving averages at 21,50,200 should line up. For a long time, the opposite was true.
Enter at the close of the signal candle.
- Recommended time range: 3m
3m is really good, less than 1m faster, less than 5m slower.
- Recommended pairing/instrument: US30
The Dow is a real trend and a good choice. Trading during the New York session, of course. Do not trade this for gold. Gold trading is more complicated
- TP, SL
This is something I really want to improve on. I use tp=50 points (1$ = 1 point us30), sl = 25 points. But using ATR seems good. Maybe someone should try it.
R:R of 2 is really useful here, otherwise I doubt it would have worked...
Why I'm posting this: Maybe we can improve it together and write an EA to test it.
Here is my manual backtest of about 40 trades:
📦 Summary of post attachments (2)
Below are all the files (2) shared in the reply.
💡 Featured Recommendations
✍️ Latest by the author
- •
- •
- •
- •
- •
- •
📌 Popular topics
- •
- •
- •
- •
- •
- •
- •
- •
🔗 You May Be Interested In
- •
- •
- •
- •
- •
- •
