SMA and Parabolic SAR Trend Following with Session Controls
Summary
This trend-following strategy combines the direction of a simple moving average with price position relative to Parabolic SAR. It enters long when the average is rising and price is above SAR, and short when the average is falling and price is below SAR. A trade can exit when either its SMA direction turns against the position or price crosses the SAR. The script also provides a selectable trade direction and a session filter that can close positions at the session boundary.
Risk controls include a fixed-point stop and an optional fixed-point target, with the supplied defaults implying a one-to-three risk/reward distance. The description identifies the VN30F1M contract as its intended market and states a default one-contract size and trading hours. These are configurable rules, not evidence of profitability; no backtest results or cost analysis are provided. The session logic also depends on the chart's time settings, which matter when applying it to another market or exchange.
Key ideas
- Long and short entries require agreement between SMA slope and price position relative to Parabolic SAR.
- An SMA reversal or price crossing SAR can independently trigger an exit.
- Fixed-point stops and optional profit targets define trade risk and reward.
- A configurable session filter restricts entries and closes open positions after the session ends.
- The document specifies intended use on VN30F1M but provides no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.