Parabolic SAR Forex trading strategy — is a rather risky system that is based on direct signals of the Parabolic SAR indicator, which shows stop and reverse levels.
Enter Long position when the current price touches the indicator from below and it changes its direction.
Enter Short position when the current price touches the indicator from above and it changes its direction.
Set stop-loss directly at the indicator's latest level — above the price for Short positions and below the price for Long positions. Adjust stop-loss with each new bar.
Take-profit should be set to the same value as stop-loss, but you should not adjust it. For example, if your Short trade entry level is 1.1030, and stop-loss is set to 1.1050 (20 pips), your take-profit level should be set to 1.1010 (same 20 pips).
As you can see on the example chart above, there are five entry and exit points:
Judging from above it is easy to conclude that short and long positions always follow one after another in this strategy. You can also see that although take-profit helps to keep many of the trades in the green, it also prevents those trades from reaching their full potential.
Use this strategy at your own risk. EarnForex.com cannot be responsible for any losses associated with using any strategy presented on the site. It is not recommended to use this strategy on the real account without testing it on demo first.