I tried this on the following pairs; EUR/USD, USD/CHF. However, I did it on a 3 hr chart because oanda doesn’t have a 4 hr chart. Anyway, I keep posted on the outcome. Try it on oanda on a 3 hr chart.
I usually don’t make posts like this, but as of writing this, if you got in on the last valid trade for GBPJPY you’d be up 930 pips!
Then again, anything could have happened when the new year opened back up, and if it went the other way, your stop might not have been honored…who knows.
Hi everyone,
Can someone tell me what my default settings should be Bollinger Bands? I keep reading
20, 1, 0 but mine comes defult at 20, 2, 0 (which makes a significant difference)
Thanks
Pretty sure the default is 2 standard deviations. 20,2 would be correct, and not every PSAR dot should appear outside of the bands.
Hi Icycloud,
Refer to USD/JPY. Please see in attachment. Firstly the psar dot appear in the inside BB but the dot continue to outside of BB. this mean your method valid or not ? 
Thanks,
MS
P.S : also there is EUR/USD psar dot outside the BB. This thread we can enter ? due USD economic really choppy recently
Hi, can you please help me with my chart settings…
Parabolic SAR (Default)
Min Acceleration : 0.02
Acceleration Step : 0.02
Max Acceleration : 0.2
Bollinger Band (Default)
MA nbr periods : 20
Standard Deviation : 2.0
Method : Simple
Please, how do i change these to configure to the IcYcLoUd TrAdInG SySteM
Thank You!.
You tried this system on a 4 hr. I want to try it on daily chart. Please I was just wondering if you can tell me if it will be profitable to try it on a daily chart. I was looking at the daily chart with the currency pairs you mentioned and I noticed that none has a psar dot outside the bollinger band. However, when you tried it on 3 hrs chart, you will see the psar dot outside the bb.
I am using oanda and this broker doesn’t have a 4 hr time chart. Is it okay to use the 3 hr chart because that is the only time chart close to 4 hr.
Another question, is it okay to enter trade when the psar dots are now inside the bollinger band. I noticed that on some of the pair, the psar dot started from outside to inside the bb but the psar dot hasn’t appear on the opposite that will indicate a reversal. It might be late trade. Is it still okay to enter since there is no reverse psar dot on the opposite side of the bb.
realf8thguy, those settings are correct.
icycloud, thanks for your system. i like it very much. i just want to ask since my charts dont provide 4 hours chart, does it work well on 30min, 1 hr, or daily charts? what are your experiences on them?
Hi:
Thanks for a system that I feel happy to trade. I would like to submit a few observations that may help.
Definition: Reversal PSAR Dot: This is simply the PSAR dot that would normally signal a reversal. [U]It is the FIRST dot in the reversed string of PSAR dots.[/U]
Things kook best if I trade and reverse only if the Reversal PSAR dot is outside the Bollinger Band. To clarify: if the Reversal PSAR Dot is inside the Bollinger Band, but the second and perhaps subsequent PSAR Dots are outside the band, I will NOT reverse my position. Looking at the 4 hr for all the pairs that IcyCloud recommends shows a nice series of trades.
I like this system for MANY reasons. The most important to me is that I can clearly see a signal:
- Is there a Reversal PSAR Dot?
- If "yes’ to question 1, is this Reversal PSAR Dot outside the Bollinger Band?
If “yes” to both, then trade.
How nice! Thank you IcyCloud!
Barry
Personally i DONT have any exp on this time frame… however u can manual backtest by setting up all the indicators and scroll back to sees if its profitbale… hope that helps…
Due to the fact i’m now in retail line now… i’m seldom online… any pros can kindly answer any question on behalf for me would be greatlly appericated, Thanks
Best Reg
Chin Liang
Hi Barry, first of all… a good new year to you! Thanks for supporting my system although its not a holy grail… This system was designed to be as simple as possible, as less time concuming as possible. You are most welcome to leave any suggestion or improvment to the system… Cheers
Best Reg
Chin Liang
sar is great but when the price is ranging, it’s mostly useless. so what do you do when the pair is ranging? follow the dot or do something else?
when you exit the position do you usually exit only when the dot is outside the bb like the beginning when you entered?
this way we can avoid more ranging wipesaws?
I like this system, and am working on ways to make it more effective.
However, last night I was wondering (more than just wondering) why this system seems to work. Here’s the problem:
The [B]first reversal dot in the PSAR[/B] is just the most extreme value (high or low) for the previous PSAR run of dots. If the PSAR has just indicated a “buy” (dots under the price) then the lowest low of the past PSAR run of dots is the first PSAR dot. And the reverse is true if the new PSAR is indicating a “sell”: The first PSAR dot is the highest high of the last run of PSAR (the last “buy” PSAR string of dots).
[B]Bollinger Bands[/B] is a moving average of closing prices (the center line), and then calculates the + and - 2 deviation lines (adjustable). In a normal distribution of numbers 95% of the values are within +/- 2 standard deviations.
What does Bollinger bands have to do with the first PSAR reversal dot? Why would that reversal dot being outside of the 2 standard deviations from the closing price (over the last n, default = 20, bars) signal that the PSAR move is a valid one?
I don’t know. Maybe the Bollinger Bands are just a reasonable filter. Maybe there is a hidden connection, a sort of “price spring” action.
Maybe it’s like the story of someone asking a centipede how it could walk with all of those legs. The centipede thought about it, and couldn’t take another step. Perhaps I should shut up and trade. 
Barry
Yes, I am like you Barry. I much prefer to have something that has a logical rationale to it even if at the end of the day those connections are shown to be spurious
Adding my madness to your method I have noted that if one were to add a little MTF to your system it could be obscenely effective. For example on the 4hr chart of GBP/YEN we note a great short was established then a SAR Reversal appeared and according to canon we exit with a nice profit on the short. But on the Daily chart the Trend is Down. The slope of the 20 MA is falling. SAR being the schizo indicator it is, flips short then gives a long signal on the 4hr chart, which if one glances at the Daily should be ignored. The pair is consolidating/ranging on the 4hr but price action is clearly still rolling down the hill. That said the only true filter for any system would be the price action on the daily. Throwing this into vtrader I was wondering about programming SAR not to print if it appears inside the bands then prints outside the bands as a no trade or SAR completely printing inside the bands and a great move starts. Which up and moves away from a decent price to get in. This is a neat discretionary system which requires just a little more user input in certain situations. Anyway, the Stop Signs and lines on the Charts are where the trader could have placed their stops, crossed their fingers, and waited for the trend to resume on the 4hr time frame. And what a coincidence that pesky SAR gives a pretty conservative Stop location on the Daily and an aggressive Stop location on the 4hr.:eek:
-blaquesmith
Upon further review using the day for stop locations works. On the charts of EUR/USD the 4hr gives an exit signal at point 1 (vertical line). On the daily a stop at the 2 two day low point 1 (horizontal line) would lock in some pips and keep a trader from cutting his profits short. Point 2 (vertical line) the 4hr chart gives a Short signal, if the trader still in a long position checks the Daily. The trader should spot the Trend is still up according to SAR below price on the Daily and let their profits run. A Stop can then be moved just below the Point 2 (horizontal line) on the Daily Chart near the Bollinger Bands 20 MA where a SAR dot miraculously prints. I know thats near a psyche number but if price breaks 1.4550 the uptrend is defunct. This way the trader is truly only using SAR as the prime mover in this system i.e. if SAR is in tandem across both time frames the 4HR and Daily and outside the Bollinger Bands take the signal. If SAR is at odds across both time frames ignore 4HR entry or exit signals, especially If in the market (hopefully with the Daily trend)…let the trade breath and develop. On second thought any 4HR Signal could be taken against the daily trend. The gains will be smaller, but a trend on the 4HR chart is nothing but a Retracement on the Day anyway:D
-blaquesmith
I’ve been a lurker for quite a while now, i decided to register…i’ve been using this system on a 15min chart for 2 weeks in a live account, im now 109% up in 2 weeks. i use it on pretty much any pair with a decent spread. i dont know why it works but it does… i dont back test mainly because i dont know how. im interested in what results it would have produced in the past.
I basically look for moves of 20-30 pips and move my stop loss to b/e once price moves half way to my profit target.
anyone else had success using this time frame…i use all the default parameters