Confirming Parabolic SAR Signals with Three Indicator Instances

Summary

This brief description outlines an automated trading system that uses three instances of the Parabolic SAR indicator. A trade signal is generated when the third indicator's bar closes, provided that the direction is confirmed by the trend signals from the other two instances. The approach uses agreement across indicator instances as a filter for entries.

The document mentions test results for USD/CHF on a four-hour chart during 2011, but provides no numerical performance measures or detailed interpretation in the text. It says the tests used default expert-advisor settings and did not use stop-loss or take-profit orders. That leaves risk control, drawdowns, sensitivity to settings, and robustness across markets or periods unaddressed; the sparse description is not enough to assess profitability.

Key ideas

• The system waits for a closing bar from a third Parabolic SAR instance to generate a signal.
• The signal is accepted only when two other Parabolic SAR trend readings agree.
• The described test covers USD/CHF on a four-hour chart in 2011 using default settings.
• The tested version had no stop-loss or take-profit, and the document gives no detailed performance statistics.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.