Parabolic SAR Trend Following with Filters and Risk Controls
Summary
This strategy uses Parabolic SAR flips as its main entry signal, with an option to enter when price crosses the last SAR value before a flip. EMA, Squeeze Momentum, and a Volatility Oscillator can be enabled as individual or combined filters. Exits can follow SAR reversals or use fixed profit and loss levels or a risk/reward target; trailing take profit is also configurable. The parameters cover the SAR acceleration settings, filter periods, entry choice, and exit rules.
The document describes the logic and lists a BTC/USDT futures backtest configuration spanning about a month, but it reports no performance results or comparisons. It characterizes the method as suitable for longer-term trend tracking, while acknowledging that sideways or sharply fluctuating markets can produce false signals or trigger stops. Results would depend on parameter choices, market, timeframe, transaction costs, and execution; the published configuration alone does not establish profitability.
Key ideas
- Parabolic SAR flips provide the primary trend reversal entry signal.
- A breakout option enters when price crosses the latest SAR level before a full flip.
- EMA, Squeeze Momentum, and Volatility Oscillator filters can be used to screen signals.
- Exit choices include SAR reversal, fixed profit and loss levels, risk/reward targets, and optional trailing profit.
- Sideways markets and large price swings can undermine the strategy, and no backtest results are reported.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.