[dpaterso]

Ok - well - I thought I'd keep this thread going - so that we can see where we are at with this indicator (and if the truth be told - it keeps me away from my trading platforms and also serves to keep me in check)!!!

Here are just some thoughts and observations.

First: I reopened my short position that I closed on Friday. Why? Mainly because I'm giving all of this advice about sticking the trades through and letting them run their course based on Parabolic SAR and then I'm doing the total opposite - not fair - not good!!! Also - I had a look at the Weekly chart for AUD/USD and this morning the very first PSAR dot appeared on the top of the new Weekly bar so - in keeping with my experiment and my own advice - if I was trading the Weekly charts - I would have entered a new short position here anyway. I hope I'm not going to regret this!!!

Second: I can see why people (myself included) give up on this indicator very quickly and easily. The main reason I think is because when you open your very first position using this indicator you may have already missed a major move AND you therefore would have made an immediate initial loss. The trick, as far as I am concerned, is to take this (possible) initial loss and remember to stop and reverse. Once you have got to your first stop and reverse then you should be good to go for the long haul.

Third: I have on two occasions this morning attempted to 'second guess' the indicator. Take a look at the attached Daily for GBP/BGN (that's the Bulgarian Lev if you're wondering). I'm taking a chance by second guessing the indicator (this is not a good thing especially with AO) BUT I'm thinking (hoping) that because PSAR has been penetrated already that tomorrow's first PSAR dot will appear above the new bar and I will be in the trade early. If not - I've set a small stop loss i.e. just above the high of the current bar just in case I'm wrong. If the price decides to go up I've not lost too much and will then have to wait until the first PSAR dot actually does appear at the top if the price then decides to move down again.

Fourth: If you're lucky like me - you don't necessarily have to set stop losses. Got you there!!! No - what I'm saying is this: at Delta - instead of setting a stop loss - I can place a stop order to close my initial position and then open a new position in the opposite direction thus giving me an immediate stop and reverse. In other words - let's say I opened with 1 lot. Instead of setting a stop loss (of course based on the value of PSAR) I place an order to 'dispose' of 2 lots in the opposite direction. The first lot will be closed and a second lot will then be opened in the opposite direction thus an immediate stop and reverse. Be careful though - if I did this at my other two brokers I would land up with a hedged position which almost always turns to 'sh1t'. The only way to accomplish this at these two other brokers would be to place a stop loss AND a stop order in the opposite direction and then hope like mad that they BOTH get executed ON TIME AND AT THE CORRECT PRICE!!!

Regards,

Dale.