Shakesfx GBP/JPY Parabolic SAR. Nothing more, nothing less (Shakesfx GBP/ JPY Parabolic SAR. Nothing)

EAcpu | 5 reads | 0 comments | 2026-05-03

Shakesfx GBP/JPY Parabolic SAR. No more, no less.

EDIT: This system works on all currency pairs, not just GBP/JPY. (Unfortunately I can't change the topic title)

Having suffered from overtrading in the past, I sought a system that would provide a long-term profitable strategy. I chose the Parabolic SAR because of its simplicity and consistency. I've only done backtesting since '04, but the results so far look promising. I know all indicators have a lag, but SAR seems to be doing well without too many negative trades. I have found that the most profitable traders in the 5% club trade primarily on the daily chart. Let's see how we proceed, I'm open to suggestions and will keep my trading diary here. I'm currently working in Iraq so have limited access to the internet, but I'll try to post as much as I can.
I stick to daily charts and only trade in the direction of the weekly directional indicator. I'm not using any other indicators. This seems to take all the emotion out of the trading process and hopefully allows me to get on with my normal life without having to stare at a screen every day. I only need to check once a day to see if an opposing SAR signal appears on the daily candlestick change. Making consistent profits in 5 minutes a day suits me well. Obviously, the profits shown here may not be to everyone's taste, but I would rather make a steady profit with fewer pips than make a quick profit (or loss). This style of trading suits me and is my goal.

Over the past 12 months (December 7th to December 8th), the following trades would have been made using the GBY/JPY daily system:

Sold on December 20, 2007 for 226.16
Closed at 208.84 = +1732 on January 24, 2008
06/02/08 Sold at 209.28
Closing at 212.42 on February 14, 2008=
Sold at 208.73 on February 29, 2008
Closed at 199.73 = +900 on March 28, 2008
Bought on April 18, 2008 at 203.78
Closed at 204.60= +82 on August 5, 2008
Bought on May 23, 2008 at 205.97
Closed at 211.31= +540 on January 7, 2008
July 18, 2008 212.16 Buy
Closed at 212.64 on March 8, 2008 =
03/08/08 Sold at 212.64
Closed at 195.38 = +1726 on September 22, 2008
Sold at 187.64 on September 30, 2008
Closed at 146.59 = +4105 on November 27, 2008
Sold at 138.55 on February 12, 2008. Run g on December 25, 2008 at 133.16 = +539 points

Total from December 7th to December 8th = +9358 points (9 trades)

Of these 9 trades, only 2 resulted in negative returns.
Manually backtesting since December 2004, we get the following transactions and results:

December 6 – December 7 = +3888 (14 transactions)

Bought on November 28, 2006 at 224.97
Closed at 230.81 = +584 on May 1, 2007
Bought on December 1, 2007 at 233.91
Closed at 236.98 = +307 on January 2, 2007
Sold at 231.73 on February 28, 2007
Closed at 225.97 = +576 on March 19, 2007
Bought on March 19, 2007 at 225.97
Closed at 237.36 = +1139 on April 20, 2007
Bought on April 29, 2007 at 238.18
Closed at 238.44 = +26 on May 13, 2007
Bought on May 18, 2007 at 239.43
Closed at 239.60 = +17 on August 6, 2007
Bought on June 14, 2007 at 241.74
Closed at 244.46 = +272 on June 27, 2008
01/07/07 Buy at 247.28
Closed at 247.64 = +36 on July 26, 2007
Sold at 247.64 on July 26, 2007
Closed at 243.75 = +389 on August 8, 2007
Sold on December 8, 2007 for 238.93
It closed at 232.66 =+627 on August 23, 2007
Sold on September 19, 2007 for 232.85
Closed at 232.64 on September 28, 2007 =
Bought at 234.77 on September 30, 2007
Closed at 237.74 =+297 on October 17, 2007
Bought at 236.38 on October 30, 2007
Closed trade at 230.65 on November 11, 2007 =
Sold on November 11, 2007 for 230.65
Closing at 228.53 =+212 on November 29, 2007

December 5 – December 6 = +238 (11 trades)

Sold at 208.36 on December 15, 2005
Closing at 202.83 =+553 on January 13, 2006
Bought on February 22, 2006 at 207.22
Transaction ended at 202.16 on February 27, 2006=
Bought on March 29, 2006 at 205.57
Closed at 207.76 on April 21, 2006=+219
03/05/06 Buy at 208.63
Transaction closed at 206.18 on October 5, 2006=
Bought on May 23, 2006 at 210.04
It closed at 211.86 =+184 on June 21, 2006
Bought at 212.18 on 06/07/06
Closed trade at 210.40 on October 7, 2006 =
Bought on July 14, 2006 at 212.71
Closed at 213.63 = +92 on July 28, 2006
04/08/06 Buy at 217.00
Closed position at 217.82 on August 18, 2006=+82
Bought on August 24, 2006 at 220.27
Closed position at 221.30 on May 9, 2006=+103
Bought at 221.70 on September 15, 2006
Closed at 221.63 on October 16, 2006=
Bought on October 23, 2006 at 223.53
Closed at 222.94 on November 14, 2006=

December 4th – December 5th = +2155 (7 transactions)

01/12/04 Buy at 196.72
Closed at 201.28 = +456 on December 21, 2004
Bought on March 30, 2005 at 201.61
Closing at 205.23 on April 21, 2005 = +362
Sold at 196.54 on May 17, 2005
Closed at 196.82 on June 13, 2005 = + 28
01/07/05 Sold for 197.59
Closed at 195.46 on July 27, 2005 = + 213
Bought at 198.68 on August 30, 2005
Closed position at 200.71 on September 12, 2005 = + 203
05/10/05 Bought at 201.04
Closed at 206.57 on July 11, 2005 = +553
Bought on November 28, 2005 at 204.93
It closed at 208.33 =+340 on December 14, 2005

Backtesting shows that most trades were positive. In fact, out of a total of 41 trades since December 2004, only 9 were negative. The largest decline was 573 points in November 2007. Large drawdowns like this will obviously be protected by stops. I ran a manual test using the new parameters to see which TP and SL levels are best for locking in profits. I will post the results using SL and TP levels soon.

rule:

Parabolic SAR settings: (0.02,0.20)

Check the daily chart on new day candle close/open.

If the indicator shows an opposite direction, check the overall trend against the weekly chart.
If the weekly and daily SAR agree, enter the trade immediately on the new candle.

Check the open/close of a new daily candle once a day and wait for the reversal SAR to appear.

If a reversal SAR occurs, do not exit the trade until the daily candle is completed, this is to ensure that this is a clear reversal signal as sometimes the SAR points may redraw in the opposite direction. When that candle completes and the next daily candle appears, exit the trade.

Wait for the next daily entry signal.

Examples of long and short entries: