Pro Parabolic Sar Trend Trading Strategy is a simple system built on two technical indicators, featuring straightforward rules that won’t be difficult for beginner traders. This strategy can be applied not only to classic Forex trading but also to cryptocurrencies and binary options.
Entry Parameters
- Currency pairs: any, including cryptocurrencies
- Timeframe: M15 and higher (for binary options, expiration time is 2-3 candles)
- Trading time: London, New York
- Risk management: after calculating the stop-loss, choose a lot size so that the risk does not exceed 2-5% of the deposit per trade
Indicators Used
For market analysis, use the following indicators, which can be found in the archive at the end of the article:
- Pro Parabolic Sar (0.01- 0.1, Price High 2, Price Low 3)
- Blau indicator: (4, 1, 9)
Price Chart Setup
To speed up the process of installing indicators on the chart and ensure it is always set up correctly, use a trading template. To do this:
- Unpack the archive
- Copy the template to the templates folder
- Copy the indicators to the MQL4 -> indicators folder
- Restart the terminal
- Open the chart of the desired currency pair
- Apply the template named Pro Parabolic Sar
The chart should look like this:
Signals for Opening a Long Position (Buying a Call Option)
To buy according to the trading strategy, wait for the following signals:
- A green upward arrow appears;
- The Blau indicator line consists of green dots.
Signals for Opening a Short Position (Buying a Put Option)
To sell, the indicator signals should be as follows:
- A red downward arrow appears;
- The Blau indicator line consists of red dots.
Setting Stop-Loss and Take-Profit Orders
Before opening a trade order, make sure you know how to close it. To do this, use protective orders or manually manage the trade.
- Initially, set the stop-loss above/below the previous high/low. It is recommended to use a trailing stop;
- Set the take-profit order near the trend’s support or resistance line. It is also acceptable to close the position when the Pro Parabolic Sar indicator gives a reverse signal.
Note that the Pro Parabolic Sar trading strategy has a clearly expressed trend-following character, so it will generate a large number of false signals in sideways markets. To minimize their number, you can add a trend filter to the strategy. Before using the Pro Parabolic Sar Trend Trading Strategy on a real account, it is recommended to test it on a demo account.
Download the Pro Parabolic Sar strategy template and indicators
