Hi there,
mraugustyn:
I'm sorry to hear of your misfortune (although I'm down a hell of a lot more than that but I do know how you feel). Let me state though - that none of my losses are due to the CORRECT use of Parabolic SAR - I have ONLY had good results.
One thing I would like to request from people posting negative comments about Parabolic SAR:
If you lost money using this indicator then would you please give us a little more detail as to how and why and what the circumstances were at the time? Maybe even some charts?
The reason I ask is because there have been at least two negative reports or comments on this thread but with no clarification whatsoever and this is not helping anybody (no offense). If there is a serious flaw in this indicator then I'm sure we would all like to be made aware of it. From my perspective - I've tried using this indicator on its own - and on the two or three occasions that I have done this is the past six or seven months it has always turned good profits (even although I'm a 'chicken' and bail out early WHEN I SHOULD NOT HAVE)!!!
On the other hand I do think that it is unfair or wrong of me to be posting the monetary value of my profits on this thread. Yes - I'm lucky to have a lot of reserves and have been very lucky to be able to take the huge losses that I have incurred in the past six or seven months and still be here to tell the tale - but the figures that I made this time around I do know and feel are inflated because of the huge volatility and uncertainty in the Global Markets - so if you are new at this - don't think that this is going to happen everytime - I think that this week was really just a matter of getting in at the right time (I'm not so sure that I got out at the right time though - yes - I'm still kicking myself right now)!!!
Basically - I do believe that this indicator just HAS to produce profits over the long term i.e. if you stick with it and don't give up the moment you incur a loss. From my perspective I don't see how it cannot turn profits. It has to be the most simple and mechanical of all of the indicators around and leaves very little to trader 'intuition' which has been my downfall all along.
Remember: it was designed so that you are 'always in' the market i.e. stop and reverse and I have a feeling that this is where the bad results stem from i.e. attempting to use this indicator with not enough margin to be able to take the inevitable losses that WILL occur from time to time and then either giving up or having to give up because you've run out of cash. If there are any other reasons (and we all know that it will not do well in a ranging market although this should not result in HUGE losses anyway) then please let us know.
In a crass attempt to keep me away from my trading platforms today i.e. until I get some new PSAR dots appearing indicating a reversal of my good fortunes this week I have decided to compile a nice little ebook or something like that called 'My Parabolic SAR Secrets' (I hate it when people call things 'secret' don't you)? I'll post it as an attachment here (free of charge of course)!!! No - seriously - there are a few 'little' things about this indicator that I have noticed and that I would like to share and get input on so I'll get to it sometime today.
Anyway - like I said before - if you have had bad results or lost money using this indicator on its own - then please give us details if you don't mind. I'm not and expert on this indicator nor am I am 'expert' or 'professional' trader so I could be missing something here and I (and everyone else following this thread) would really like to know what the possible pitfalls are.
Actually - that's a good point: at what point do you become a 'professional' trader??? I do this for a living - does that mean I'm a 'professional' trader??? I have read some books on trading you know!!!
Regards,
Dale.
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