Trend Strategy Using PSAR Reversals and Fractal-Based Scaling

Summary

This strategy uses a lagging Parabolic SAR crossing price to identify directional entries and exits. Once a position is active, Williams-style fractal breakouts help generate take-profit or re-entry events: favorable price progress through higher or lower fractal levels can reduce exposure, while qualifying moves may add back to a position. Re-entry settings include a proximity condition relative to the lagging SAR and controls for allowing re-entry without a prior take-profit event.

The strategy manages position size through configurable progressive reductions and re-entry thresholds, and can restrict trading direction or apply a date window. The script uses imported libraries for position tracking and fractal calculations, so the full behavior depends on code not shown in the document. No market, backtest results, or performance evidence is provided; users would need to inspect the dependencies and validate execution assumptions before drawing conclusions.

Key ideas

• A lagging Parabolic SAR crossing price determines directional entry and exit events.
• Fractal breakouts in the favorable direction can trigger partial take-profit actions.
• Re-entry signals depend on fractal conditions, position size, and configurable proximity or prior-profit rules.
• Progressive position reductions and re-entry fill rates control exposure after the initial trade.
• The strategy relies on imported libraries and reports no empirical performance evidence.

Tags

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