Parabolic Trader

Table of Contents

About the Strategy #

The Parabolic Trader is a potent trading strategy based on the Parabolic SAR (PSAR) indicator. It uses the PSAR, along with the Exponential Moving Average (EMA 200) and the Moving Average Convergence Divergence (MACD) indicators, to identify potential buy and sell points.

Used Indicators #

The strategy integrates three technical indicators:

  1. Parabolic SAR (PSAR): This is used to determine the direction of a token’s momentum and pinpoint possible reversals.
  2. Exponential Moving Average (EMA 200): The EMA200 gives more weight to the most recent price data and is used to identify the overall market trend.
  3. Moving Average Convergence Divergence (MACD): This measures the relationship between two EMAs of a token’s price and is used to identify potential buy and sell points.

Signal Conditions #

Long Conditions #

For a ‘bullish’ or long signal to be triggered, the following conditions must be met:

  • The closing price of the token is above the EMA200.
  • The closing price of the token is also above the PSAR.
  • The MACD line is above 100.
  • The MACD line crossed above the signal line (Bullish Crossover).

Short Conditions #

For a ‘bearish’ or short signal to be triggered, the following conditions must be met:

  • The closing price of the token is below the EMA200.
  • The closing price of the token is also below the PSAR.
  • The MACD line is below -100.
  • The MACD line crossed below the signal line (Bearish Crossover).

Success Rate #

In backtests, the Parabolic Trader strategy showed an impressive success rate of 70%. However, past performance does not indicate future results, and each trader should do their due diligence and use the strategy in conjunction with their comprehensive market analysis.

Disclaimer #

Please note that trading involves risk, and the Parabolic Trader, like any strategy, does not guarantee profits. It is only a tool to help in decision-making. Always do your own research and consider seeking advice from a certified financial advisor. The Parabolic Trader strategy is available only to our paid subscribers.

What are your Feelings

Powered by BetterDocs