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#1 ⇑ Haut ⇑ 10-02-2009 13:21:41
- Bruno
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Study on the Parabolic SAR
Here is a daily study on the efficiency of the Parabolic SAR since 2001 on EUR/USD
To do it, i've simply do like i change the side of my position at each reversal of the Parabolic SAR. To that, i add the spread as you can see(i directly put 5 pips at the entry price).
The final result is perplexing : - 7674 pips on 8 years!!!
There is only one year in profit. This make us thinking about the efficiency of this indicator on the LT.
Besides, you make profit 1/3, for a mean profit of 242 pips.
In a global way, each trade lead to a mean loss of 39 pips, et each year lead to a mean loss of 959 pips.
If you dare!!!
The final result is perplexing : - 7674 pips on 8 years!!!
There is only one year in profit. This make us thinking about the efficiency of this indicator on the LT.
Besides, you make profit 1/3, for a mean profit of 242 pips.
In a global way, each trade lead to a mean loss of 39 pips, et each year lead to a mean loss of 959 pips.
If you dare!!!
#2 ⇑ Haut ⇑ 10-02-2009 13:35:14
- Bruno
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Re: Study on the Parabolic SAR
Here is how reversal are done:
Green arrows show moments when we make a reversal on our short to become long.
Red arrows show moments when we make a reversal on our long to become short.
All signals are taken into consideration but i just want to show you by indicating false or right signals, how this indicator can make you put the wrong decision.
Red arrows show moments when we make a reversal on our long to become short.
All signals are taken into consideration but i just want to show you by indicating false or right signals, how this indicator can make you put the wrong decision.
Here is how the indicator work with accuracy
If the shadow of the canddlestick penetrate a SAR point, a buy or sell signal is given.
#3 ⇑ Haut ⇑ 10-02-2009 13:43:06
- Bruno
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Re: Study on the Parabolic SAR
For proponents of this indicator, i've also done a study on a one hour chart study to give credit to this indicator...what is hard to find in a daily study...
Results are better than in a daily chart but still very very low. We have a mean of 20 pips of profit on the month.
The probability of profit is quite the same as in daily chart and the global profit per trade on the overall of trades is just at 1.
Don't hesistate to comment this study.
Good day everybody
Bruno
The probability of profit is quite the same as in daily chart and the global profit per trade on the overall of trades is just at 1.
Don't hesistate to comment this study.
Good day everybody
Bruno
#4 ⇑ Haut ⇑ 19-02-2013 12:43:04
- Steven Smith
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Re: Study on the Parabolic SAR
You can open a buy trade when the parabolic sar dot appears below the candle and open short position when the dot appear above the candle. But according to my knowledge you have to combine parabolic signal with another indicator. You can use RSi or MACD with parabolic. And best position to open a trade is at the first dot. Because that would be the beginning of the trend. and even if the tren reverse you can quickly change the trading direction.
Last edited by Steven Smith (19-02-2013 12:50:19)