Parabolic SAR Forex Trading Strategy

The Parabolic SAR Forex Trading strategy is a channel trading strategy with Parabolic SAR dots for entries. It’s supported by the Escalda forex Indicator to filter a trend direction. That forex trading strategy utilizes a swing trading approach but in the direction of an overall chart trend.

The Parabolic SAR Forex Trading strategy fits all timeframes and currency pairs. It is displayed directly on the main forex trading chart and in a window below it. The main default settings can be modified directly from the input tab. Feel free to test the settings and parameters to fit your preferences.

How to trade with the Forex Parabolic SAR Trading Strategy

The Parabolic SAR Forex Strategy consists of three main indicators, which are the following:

• Parabolic SAR: the Parabolic SAR forex indicator provides “Stop and Reverse” dots aligned above/below the price. A switch of these Parabolic SAR dots triggers trades.
• Besar 01: this is the channel forex indicator with red bands. These bands define take profit targets. There is also a gray middle line.
• Escalda: it is a trend-direction filter. It has four rows of blue/red color dots. Ideally, they should all be blue for a buy trade or red for a sell trade.

Buy Signal

Follow these steps for a long trade:

• The channel slope is upwards.
• Price touches the lower band of the Bescar 01
• Parabolic SAR color dots switch to below price (blue dots)
• Escalda dots are blue (not mandatory)
• Buy-entry trade is triggered after the above conditions are met.
• Set stop loss(SL) a few pips below the Parabolic SAR color dot at the triggering candle.
• Take profit(SL) or exit trade whenever the price hits the opposite band of the channel, or use your preferred method of trade exit.

Sell Signal

Follow these steps for a short trade:

• The channel slope is downwards.
• Price touches the upper band of the Bescar 01
• Parabolic SAR dots switch to the above price (red dots)
• Escalda dots are blue in color (not mandatory)
• The sell-entry trade is triggered after the above conditions are met.
• Set stop loss(SL) a few pips above the Parabolic SAR color dot at the triggering candle.
• Take profit(SL) or exit trade whenever the price hits the opposite band of the channel, or use your preferred method of trade exit.

As always, to achieve results, remember about proper money management. To be a profitable trader, you must master discipline, emotions, and psychology. It is crucial to know when and when not to trade. Avoid trading during unfavorable times and forex market conditions like low volume/volatility, beyond major sessions, exotic forex currency pairs, widespread, etc.

How to set up the Forex Parabolic SAR Trading Strategy in MetaTrader (MT4)?

Installation Guide

Download the Parabolic SAR Forex Trading strategy.zip archive at the bottom of this post, unzip it, then copy and paste the forex indicators files of the Parabolic SAR Forex Trading Strategy into the MQL4 folder of the MT4 trading software.

You can access to this folder by clicking the menu options, which goes as follows:

File > Open Folder > MQL4 > Indicators (paste here).

Furthermore, you must copy the template file into the templates folder to run the Parabolic SAR Forex Trading System. To proceed, right-click on a chart, then the Template > Open Templates, and copy the Parabolic SAR Forex Trading System. tpl file into that folder. Select the new file and click Open to load the strategy on your chart.

Read More Forex News Trading EA FREE Download

Bottom Line

The Parabolic SAR Forex Trading System is worth adding to your forex trading collection. A simple good forex strategy will enhance your chance of success. Nonetheless, remember to have real expectations. Like any other technical analysis tool, it cannot provide accurate signals 100% of the time. Thus, this forex trading system provides false signals occasionally. Its performance will vary significantly depending on market conditions.

Download Free MT4 Parabolic SAR Forex Trading Strategy