The Trick to Make "Parabolic SAR" Profitable!
Loses money
No edge after realistic trading costs
- trades tested
- 11,829
- per trade after costs
- -3.12bp
- winners
- 18%
- years of data
- 14.7
Trade the Parabolic SAR only when the ADX(14) says a trend is starting: once the ADX has dipped to 20 or below and comes back above 20, enter in the direction of the SAR dots (below the bars = long, above = short) and stay in until the dots flip to the other side. Shown on NQ futures, 2-minute chart.
The exact rules we tested
- 01Instrument: NQ | Signal timeframe: 2m | Direction: both
- 02Session: 09:30-16:00 (exchange tz), flat at session end
- 03No new entries after 15:30
- 04LONG when: adx14.adx crosses above 20
- 05SHORT when: adx14.adx crosses above 20
- 06Long filter: sar < low
- 07Short filter: sar > high
- 08Entry: market at next bar open
- 09Stop: signal bar low/high
- 10Exit longs when: sar > high
- 11Exit shorts when: sar < low