Parabolic SAR - that's all!

[dr_zeus]

Wow. I'm gone for a little while and the forum turns into a mudslinger's dream. A word of caution: almost everyone who posts on open forums like babypips is an amateur trader and their advice should be taken with a grain of salt. For me, the money I put into forex is risk money (my retirement account is funded and I have savings) that I'm willing to lose, so I'll take a larger position if it looks right. To each his own.

kauaibobby - on the returns you posted, is that the dollar return per month per pair using $100 margin per pair? How did you do the back test? Do the dollar figures you list include the $100 margin - for instance did you lose money on chf/jpy?

Can you do the analysis using weekly charts and four hour charts too? I agree with mastergunner99's comment about using some kind of filter. I think PSAR needs a filter b/c it can kill you when the currency ranges (isn't this what happened to the thread founder?) I've used Laguerre indicator on MT4 as a trend indicator with some success, so maybe that will work. Or, you can use a PSAR on a higher timeframe as a filter - if the weekly PSAR is up, the daily PSAR is up, then trade on the 4H when the PSAR is up. It should give you a tighter stoploss and greater return.

Any thoughts? I've looked at tons of complicated trading mechanisms, but I keep coming back to this one for its simplicity.

[kauaibobby]

I am still just playing
No real money so far, until i figure this all out.
I just have to keep learning and practiciing.
Learning from people that have been there and done that.
So i should just trade one jpy pair and one gbp pair and so on...........
so i dont copy the same sort of trade.
I am using more pairs to see what happens in right now, with no real money.
I notice that the dot doesn't stay there until the next day candle comes up.
Is that true.
A few times I would open a trade on the first dot, and then as soon as I open it, the chart says i opened it on the second dot.
What is going on here with the dots moving.
I have read most all the 100s of messages in this tread and don't quite understand this.

[kauaibobby]

no the margin wasn't included in the back testing i did.
I'm new to this so I'm sure I have plenty of mistakes.
Since i would enter at the first dot and reverse when the dot goes the other way.
But now i find it's not that easy trading on demo, because the dots seem to move around.
I open trade on first dot then i look back and it seems like i should have traded the day before on the first dot.
But the dot wasn't there a minute ago.
don't quite understand that.
I just like the simplicity of PSAR.
I here so many problems with people getting emotions envolved in trades that i thought PSAR is much easier on weather to buy or sell.

[droesparky]

Hey Dale and others

I found another indictor I wanted to share with you.. I can figure out how to go long with it but exits and shorts well thats another story.

Take a look at it and see what you think.

looks like t might help on 1hr and 4 hr more then the daily though.

[dpaterso]

Good Morning,

It's Dale here.

Just want to say 'hi folks' to everyone.

Ingot54 - glad to see you're alive and well. If you read some of the earlier threads there were a whole lot of people that were worried about your 'sudden dissapearance'.

To my Finnish friends (this is long overdue) - I was really sorry to hear about the school shootings in Finland and sad that something so terrible had to happen in my beloved Finland.

On the subject of Finland: Tarja's new album is out (absolutley awesome).

Akram - I see you're doing well too. Great.

Miss you guys.

I'm still connecting with my cellphone (using GPRS which runs at about ISDN speeds) because when my ADSL was cut they actually suspended the line permanentely and I've had to re-apply for a line which I'm not going to get as I owe them money!!! I've had a look at wireless broadband but the coverage is not too good in my area I believe so I'm a bit 'stuffed' there as well but - no matter - I will persevere!!!

Anyway - having said all of that - I'm still 'banging away' with certain ideas and I THINK I'm coming up with something but not sure yet.

For those of you who like experimenting and 'playing around' see what you come up with when combining Parabolic SAR with SMA's / EMA's and another indicator called 'Envelopes'. I'm trying to solve the three major Parabolic SAR drawbacks which are:

1 - Only works in a trending market (so we need something to use in a ranging market or something to tell us NOT to be using Parabolic SAR).
2 - Very often the initial stop loss is HUGE (you know - when the first dot appears).
3 - The inevitable loss of pips at the end of the trade.

I'm trying a combination of Parabolic SAR, EMA's, and Envelopes to solve for the above but I don't have any 'confirmed' settings yet but see what you people can come up with.

Anyway - thanks for keeping the thread going - and if we can solve to the above three problems 'we have a winner'.

Take care everyone.

[tonymand]

Hi Dale, glad to see you are well. Could be a 'holy grail' search so beware!

[leithtec]

Dale, Something that I've added to your Par Sar indicator using multiple timeframes (5, 15 30 & 60 min.) are (1) a smooth moving average line (which rests on the screen in behind the Candle Bars) and (2) a SIMPLE oscillator which is a "screen" oscillator as well - thin bars that rest in behind the Candles and extend up or down from a "0" zero line in the middle of the screen. What I do is I wait for the Market (currency pair or whatever) to extend to the top or bottom of the "screen" oscillator bars, wait for the PAR SAR dots to appear and when the Market crosses back through the smoothed moving average line ... a trade is triggered. What's nice about the "screen" oscillator is that it keeps you on the side of the Trade that is seeking equilibrium ... that resting place on the way back from the previous extension and is usually good for the usual 30 to 40 pips. Lately I've scaled back to using the 15 min. timeframe for my entrance as I watch the 5 min. timeframe for my heads up (pre-entrance). The 30 & 60 Min. timeframes are choice for when the Market fulfills it's obligation to the upside or downside and then reverses insync with the SIMPLE "screen" oscillator confirmed with PAR SAR dots and the crossing of the smooth moving average line but in most cases the "screen" oscillator will extend to the price of reversal BEFORE the Market gets there. The Charting package that I use is called FXAccucharts. I also incorporate Gann LInes on my 30 & 60 min. Charts as well as calculating the pivot points in advance from the previous days high/low/close. LEITH.

[Hypechic]

Hello Everyone,

Seems like 'stuff' has been happening. Just read through the last couple of pages to see what I'd missed. Congrats Akram on Bocajunior, Ingot, Dr Zeus and all the others(you know yourselves)...thanks for keeping the thread going.

I have been sooo busy at work that I haven't had time to trade or even look in here in the past month. I just took a breather to come check on what's been happening. I'll be back soon though. Hopefully trading with real money this time. In the meantime, Happy Holidays Everyone.

[kauaibobby]

Trading on Daily charts.
I back tested where the first dot was to the next reverse dot.
But now i find out the dot doesnt appear until the candle closes.
So it seems i am a day late and missing a lot of profit that i figured i would get back testing.
i am trying to use MAs to see if i can get better results.
I dont seem to being doing as well as i thought i would.
Well just have to keep trying and lots of practice with fake money.
With all out heads put together we will figure this thing out.
I like PSAR because it is simple.
That what i'm looking for simplicity in life and $$$$$$$$$$$$$$ would help also
I am trying different strategys with different pair and different brokers. I just have to wait and see what time will tell.

[kauaibobby]

Has anyone been very consistant in winning with PSAR and not to much else.
It would be nice to keep things simple.
At least i hope we can.
Dale...... good to see you back here again.