Parabolic SAR Trend Following with Reversals in an Expert Advisor

Summary

This document outlines a daily Expert Advisor framework that uses Parabolic SAR to set direction: price above the indicator signals a long position, while price below it signals a short position. When direction changes, the EA attempts to close the existing position on the opposite side before opening a new one. The described reversal sequence includes basic checks for failed position closures and avoids opening another position on a side where the EA already has one.

The base framework also lists fixed-lot sizing, spread limits, configurable trading hours, an EA-specific identifier, optional stop loss and take profit, and broker-aware order handling. It is presented as development and research code, not as a finished or optimized system. No backtest, forward-test results, or evidence of profitability are supplied. Suggested extensions include risk-based sizing, ATR-based protection, higher-timeframe confirmation, market-regime detection, and portfolio management. Any use would require testing execution behavior and risk under the relevant broker, instrument, spread, slippage, and market conditions.

Key ideas

• The EA uses Parabolic SAR position relative to price to determine long or short direction.
• A direction change triggers an attempt to close the opposite position before opening a new one.
• The base includes fixed-lot sizing and configurable execution and protection features.
• Risk-based sizing and ATR-based trade protection are listed as possible extensions.
• The document provides no performance evidence and describes the EA as a research foundation.

Tags

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