Parabolic Sar Stochastic Strategy

Implementation of strategy - Parabolic SAR + Stochastic. Buy when price is above SAR and Stochastic %K is below 20 (oversold). Sell when price is below SAR and Stochastic %K is above 80 (overbought).

Testing indicates an average annual return of about 61%. It performs best in the crypto market.

Parabolic SAR supplies the trend and Stochastic refines entry on pullbacks. Signals flip when SAR changes side.

A straightforward trend strategy with built-in SAR stops. ATR settings handle additional risk control.

Details

• Entry Criteria:
  • Long: Close > SAR && StochK < StochOversold
  • Short: Close < SAR && StochK > StochOverbought
• Long/Short: Both
• Exit Criteria:
  • Parabolic SAR flip in opposite direction
• Stops: Dynamic SAR based
• Default Values:
  • AccelerationFactor = 0.02m
  • MaxAccelerationFactor = 0.2m
  • StochK = 3
  • StochD = 3
  • StochPeriod = 14
  • StochOversold = 20m
  • StochOverbought = 80m
  • CandleType = TimeSpan.FromMinutes(5).TimeFrame()
• Filters:
  • Category: Mean reversion
  • Direction: Both
  • Indicators: Parabolic SAR, Parabolic SAR, Stochastic Oscillator
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Mid-term
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium