I'm a newbie and this is my first post in any forum ever. On another FX forum, I found a thread detailing a system using the Parabolic SAR (Stop and Reverse) in it's "intended" form. I'm about 75% through the current 550 posts on this thread, and the one thing that stands out is that no one seems to have back tested it in the pure methode - they keep adding stuff to it. So I was wondering if anyone would like to write an EA for this for back testing and demo trading. The system (as I understand it) works as described below.

1. Daily charts only
2. When daily candle closes with P-SAR dot opposite previous daily candle enter long if below, short if above.
3. Enter is at high or low of yesterday candle plus a cushion of 4 to 10 pips.
4. Stop is the P-SAR value.
5. After the market closes, adjust your stop to the last P-SAR.
6. If the stop is triggered, wait for the candle to close (so that the P-SAR dot stops bouncing) and re-enter based on the rules above.

Basically you would be in the market all the time and capture large trends that would out weigh the losses.

Let me know what you think.

Could you pls draw your explanation in a schart ?

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Nic
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I've attached a PDF of GBP/USD daily with notes - let me know if you need more details

Attached Files

P-SAR.pdf (11.5 KB, 467 views)

pure psar performance, first look...

Attached Thumbnails

 

Thanks fxbx! It's pretty much what i thought ..... very small profit over a huge amount of time.

it should very huge profit over a small amount of time

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Forex Indicators Collection

Parabolic SAR is one of the best indicators, however like the ZigZag and heiken ashi , its usless in flat market ...you get lots of false signals

to void flat makret, you may want to consider using bollinger squeeze or waddah explosin or damiani voltmeter to stay away from flat market .. there are many other indicators also that can be used but those are the one I can remeber .

Good luck in your trading

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I'm trying to figure out how some of those trades lost. Looks like most woulda been in profit if stop was moved accordingly. Might have to drill down to H4 or something. Or use Stochs for OB/OS. I know you don't want to add anything else, but we all know the most important part is the exit, not the entry. So might need a better method to lock in profits.

Peace,

F.F.L.

PSAR surely works if you don't counter in OB/OS territory

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psar from NK 4c
http://www.forex-tsd.com/155684-post21.html

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