Winning Pips Strategy Using Awesome Oscillator and Parabolic SAR

Summary

The document describes a forex strategy that combines the Awesome Oscillator, Accelerator Oscillator, and Parabolic SAR. It enters long after price crosses above the SAR and both oscillators rise, or short after price crosses below the SAR and both fall. A phase flag permits one entry per SAR change. The position size is set to two units, the stop distance is based on the entry candle’s range, and the profit target is half that distance.

The author reports that spread makes the system lose on timeframes below H4, while H1 would be profitable without spread. They also say it remained profitable in a EUR/USD backtest with a 1.5-point spread, but required a take-profit distance half the stop-loss distance. No backtest period, trade count, or performance statistics are provided, so the claim is difficult to assess. The results are presented as an initial test, and the author suggests the method could be improved. The code also includes SAR-based stop exits.

Key ideas

• The strategy uses rising or falling Awesome and Accelerator Oscillators to confirm price’s position relative to Parabolic SAR.
• A phase flag limits entries to one trade per SAR direction change.
• The initial stop distance uses the entry candle’s close-to-low range, while the target is half that distance.
• The author reports spread sensitivity below H4 and profitability in a EUR/USD test with a 1.5-point spread.
• The document gives no test period or detailed performance statistics, limiting evaluation of its results.

Tags

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