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Trend Trader Strategy Using PSAR and Fractal Signals

Article Strategy library · Author: aybarsm
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Summary

This document presents a Pine Script strategy that combines Parabolic SAR with Bill Williams fractals to generate long and short entries, take-profit signals, and re-entries. Traders can select trade direction, tune PSAR parameters, choose the price sources and lookbacks for fractals, and adjust re-entry conditions such as proximity to PSAR or whether a prior take-profit signal is required.

The excerpt also specifies percent-of-equity sizing, initial capital, and a commission assumption for the strategy. It does not include the complete source: the text cuts off during the re-entry settings, so the full entry and exit rules cannot be confirmed. No performance results or market-specific validation are provided. Any evaluation would need the complete implementation and testing across instruments and timeframes, including realistic costs and execution assumptions.

Key ideas

  • The strategy uses PSAR settings as part of its trend signal framework.
  • Bill Williams fractal sources and lookbacks affect take-profit and re-entry signals.
  • Users can configure long-only, short-only, or two-way trading.
  • Re-entry settings include a PSAR proximity threshold and optional allowance without a prior take-profit.
  • The excerpt is incomplete and provides no evidence of historical performance.

Tags

Trend followingTechnical indicatorsBreakoutBacktesting

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