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Parabolic SAR FX Trading strategy — is a rather risky system that is based on direct signals of the Parabolic SAR , which shows stop and reverse levels.

Features:

1. Simple to follow.
2. Only one standard indicator used.
3. Entry and exit conditions are given directly by the indicator.
4. Indicator lag.
5. Very risky and not always effective.
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Set-Up:

1. Any currency pair and timeframe should work.

2. Add a Parabolic SAR  to the chart, set its step to 0.05 and maximum to 0.2.

Entry Conditions:

Long position: Enter Long position when the current price touches the indicator from below and it changes its direction.

Short position: Enter Short position when the current price touches the indicator from above and it changes its direction.

Exit Conditions:

Set StopLoss directly at the indicator level — above the price for Short positions and below the price for Long positions. Adjust stop-loss with each new bar.

TakeProfit should be set to the same value as StopLoss but you shouldn’t adjust it.

= As you can see on the example chart above, there are 6 entry points. The first one is bullish and leads to a profit. The second one is bearish and also reaches TakeProfit level. The third one is bullish and is a complete loss, as is the fourth one, which is, of course, bearish. The fifth one doesn’t reach TakeProfit level but it closes with only a minor loss; it’s bullish. The sixth one is a short position and has already reached its recommended TakeProfit =