Parabolic SAR Entries Filtered by Three Rising or Falling SMMAs

Summary

This strategy combines Parabolic SAR direction changes with three smoothed moving averages (SMMAs). It enters long when the SAR flips down while all three averages are rising, and enters short when the SAR flips up while the averages are not all rising. The configured SMMA lengths are 21, 50, and 200 periods; the SAR uses adjustable start, increment, and maximum values. Exits are set with percentage take-profit and stop-loss orders.

The document describes the indicator combination and its parameters, but gives no backtest performance results. Its published example uses BTC/USDT futures on 30-minute bars over roughly one month. The stated caveats are that indicator signals can mislead, particularly when conditions are choppy, and that parameter choices may need adjustment across instruments. The source also uses stop entries at the next SAR value, so actual fills depend on price reaching those levels; the description does not evaluate execution effects or provide evidence that the approach is profitable.

Key ideas

• Long entries require a downward SAR flip while all three SMMAs rise.
• Short entries require an upward SAR flip while the three averages are not all rising.
• The SMMA lengths are 21, 50, and 200 periods, with adjustable SAR parameters.
• Percentage-based take-profit and stop-loss exits are provided.
• The document gives example settings but no reported performance evidence.

Tags

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