I wish to offer an apology to the participants in this thread because of my outbursts in response to another member’s posts.
The subject matter of my posts had NOTHING to do with this thread topic, and I was in error to entertain what I did.
The development of “Parabolic SAR - That’s All” has been a long and ongoing learning experience for all of us, and I wish the purity of the idea to be preserved and developed further.
As some members have emailed me to inquire about position trading, I have decided to start a thread to deal with this, and leave this thread to continue with its theme.
I am not a system seller, nor have I ever attempted to sell information or ideas. I acknowledge wherever possible the source of intellectual property I have been fortunate to come across.
I am NOT a PRO trader - I work shift work for my salary.
But I do teach AND learn on forums, and that is my nature - always will be.
I am currently entering a mentoring programme with another company in order to develop my skills (humble though they be) though I am not at liberty to share the intellectual property of that company, out of respect for the owner of that business.
You have a bit of background now … once again I apologise for the interruption here. Had I thought about it I would never have disrupted the thread with such a dummy spit.
After a quite week with no positions, so many became available at once. last two positions closed have seen a hefty loss but that is part and parcel of the game.
Current profit since system start is at now down at 20.5%.
[U]Open Positions[/U]
EUR/PLN Short
EUR/GBP Short
EUR/AUD Short
USD/MXN Short
USD/CHF Long
AUD/JPY Long
GBP/USD Long
EUR/CHF Long
GBP/CHF Long
GBP/JPY Long
USD/JPY Long
[U]Closed Positions[/U]
GBP/USD. Closed manually for a loss after Fed rate cut. -50 pips
USD/CAD Short. Stop Loss on reduced time frame for +350 pips
XAG/USD Long. Stop Loss on reduced time frame for +5000 pips
AUD/JPY Long. Stop Loss on reduced time frame for +180 pips
AUD/NZD Short. Stop Loss on reduced time frame for +100 pips
NZD/USD Long. Stop Loss on reduced time frame for +190 pips
XAG/USD Long. Stop Loss on daily PSAR. -5000 pips
NZD/USD Long. Stop Loss on reduced time frame for +50 pips
GBP/USD Long. Stop Loss on reduced time frame for +100
AUD/JPY Long Stop Loss on reduced timeframe for +650
EUR/AUD Short stop loss on reduced timeframe for +600 pips
EUR/JPY Long Stop loss on reduced timeframe for +700 pips
EUR/CHF Long Stopl loss on reduced timeframe for +150 pips
EUR/GBP Short Stop Loss for +50 pips
GBP/CHF Long Stop loss on reduced timeframe for +50 pips
EUR/USD Short Stop loss on PSAR for -100 pips
GBP/CHF Long. Stop Loss for -75 pips
AUD/USD Short. Stop Loss for -120 pips
EUR/AUD Long. Stop Loss for -270 pips
AUD/JPY Short. Stop Loss for -70 pips
NZD/USD Short. Stop Loss for -160 pips
EUR/CHF Short. Stop Loss for -40 pips
CAD/JPY Short. Stop Loss for -20 pips
EUR/SEK Long. Stop loss on reduced timefarme for +950 pips
USD/CNY Short. Stop Loss on reduced timeframe for +350 pips
CAD/JPY Long. Stop Loss for +90 pips
AUD/JPY Long. Stop Loss for -190 pips
EUR/AUD short. Stop Loss for -210 pips
EUR/USD Long. Stop loss on reduced time frame for +220 pips
NZD/USD Long Stop loss for +55 pips
AUD/USD Long. Stop loss for +60 pips
EUR/JPY Long. Stop loss for -220 pips
GBP/JPY Long. Stop Loss for -360 Pips
CHF/JPY Long. stop loss for -125 pips
USD/CHF Short. Stop loss for +260 pips
EUR/CHF Short. Stop loss for +200 pips
USD/NOK Short. Stop loss for -1000 pips
EUR/GBP Long. Stop loss for +100 pips
EUR/AUD Long. Stop loss for +450 pips
GBP/CHF Short. Stop loss for +900 pips
EUR/USD Long. Stop Loss for -220 pips
XAU/USD Long Stop loss for -4300 pips
Just a quick question really, but whats reason are you tracking so many pairs?
Some of them are so strongly correlated its as though your opening the same position several times.
i back tested for 1 year from nov. 1 of this year about, on Oanda, Interbank FX and North Finance.
I figured on using $100 margin on each pair.
Figured Avg. pips won per month
then the average $ won per month since pip value varies so much from each pair.
I tried different ways of using indicators, but the best results kept coming up with just using PSAR by it self on Daily only, nothing else at all.
I found going with the trend it didnt win as much.
I figured the spread on silver being at 500 pips was still worth the big profit.
Same with usd-nok with a 50 pip spread was still worth it.
I was in the trade 100% of the time.
The Rating of pairs i cam up with are listed below with the pair and average win per month (in US dollars) with $100 margin used.
It is plain suicide to trade so many pairs at once. And i agree the aud/usd and eur/usd and gbp/usd correlate. If the dollar weakens then they all go up or if the dollar strengthens then they all go down. The same goes for all the Jpy pairs. So why would you wanna go long on all 3 those pairs at the same time? You only tripple your risk.
I am sure this is a fun system but in my opinion this is a recipe for disaster.
This reminds me of a system i came across a while ago with a dude that said he turned $1000 into $100 000 in a week’s time. What he didnt say was that in previous attempts he lost numerous accounts trying to do so. He doesnt even have a trading strategie. All he does is put in one 10 lot on gbp/jpy, then turn the computer off and go to sleep. In the morning he has either made a few grand or lost his whole account.
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.
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.
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.
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’.
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.
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.
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.
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.
I’ve traded two months now with real money. started with $100 and now I have $400. only with psar, I open always when new dot appears and then when I see nice profit I close it
and Dale nice to see you back. have you bought any COB albums with your forex profits?
What do you consider nice profit? I’ve been forward testing this system for a week now and often the deal goes into profit, but if I stick to the SAR’s dots it ends in losses. When is the right time to get out?
