DAX SAR Strategy with Stochastic and MACD Filters

Summary

This post outlines a DAX trading system built around Parabolic SAR. It uses a stochastic oscillator and MACD as filters for entries: long positions are considered when price crosses above SAR, the smoothed stochastic signal is above its midpoint, and MACD is positive. Short entries use a SAR reversal, a stochastic condition below the midpoint, and negative MACD. Positions exit when price crosses back through SAR, with a trailing stop also specified.

The author reports encountering many false signals and claims that winners have outweighed losers, but provides no trade history, backtest, sample period, or risk-adjusted statistics to support that claim. The post is presented as a request for improvement ideas, so it does not establish that the rules are robust. It offers no detailed discussion of position sizing, execution costs, or how the parameters should be tuned for different market conditions.

Key ideas

• Parabolic SAR supplies the strategy’s trend and reversal signals.
• Stochastic and MACD conditions filter long and short entries.
• Positions exit when price crosses the SAR level, with a trailing stop specified.
• The author acknowledges frequent false signals but provides no quantified performance evidence.
• Parameter robustness, trading costs, and position sizing are not analyzed.

Tags

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