PARABOLIC SAR Scalping Strategy For 1 and 5 Minute chart
Loses money
No edge after realistic trading costs
- trades tested
- 8,304
- per trade after costs
- -6.18bp
- winners
- 41%
- years of data
- 4.8
BTCUSDT 5m: trade only in a strong trend - longs when price is above the 50 and 200 EMA with the 50 above the 200, shorts when below both with the 50 below the 200 - and enter when the Parabolic SAR (0.02/0.02/0.2) flips to the trend side. Stop at the first SAR dot, target 1.5R.
The exact rules we tested
- 01Instrument: BTCUSDT | Signal timeframe: 5m | Direction: both
- 02LONG when: close crosses above sar
- 03SHORT when: close crosses below sar
- 04Long filter: (close > ema50) AND (close > ema200) AND (ema50 > ema200)
- 05Short filter: (close < ema50) AND (close < ema200) AND (ema50 < ema200)
- 06Entry: market at next bar open
- 07Stop: at the sar (longs) / sar (shorts) level
- 08Target: 1.5R (risk-multiple of stop)