Updating Parabolic SAR Stops as Price Bars Advance

Summary

This example describes a trade management rule that uses Parabolic SAR as a moving stop. It enters long or short positions with stop orders when the SAR level meets the stated candle high or low conditions. While a position is open, the exit stop is reset to the latest SAR value on each new candle, so the stop follows the indicator as it changes.

The document provides strategy code but no performance results, market, timeframe, or evaluation method. Its conditional checks around whether the trade is profitable assign the same stop in either branch, so they do not change the described exit behavior. The example also gives no guidance on position sizing, slippage, gaps, or parameter selection; these details would matter when assessing or using the rule.

Key ideas

• The example uses Parabolic SAR to set entry stop levels when flat.
• For an open long or short position, the exit stop is updated to the latest SAR value.
• The profit-status branches assign the same stop, so they do not alter the exit rule.
• The document offers no backtest or evidence about the method's performance.

Tags

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