The Parabolic SAR Distance Breakout strategy watches the Parabolic for rapid expansions. When readings jump beyond their recent range, price often starts a new move.
A position opens once the indicator pierces a band derived from recent data and a deviation multiplier. Long and short trades are possible with a stop attached.
This system fits momentum traders seeking early breakouts. Trades close as the Parabolic falls back toward the mean. Defaults start with
Acceleration = 0.02m.
- Entry Criteria: Indicator exceeds average by deviation multiplier.
- Long/Short: Both directions.
- Exit Criteria: Indicator reverts to average.
- Stops: Yes.
- Default Values:
- Acceleration = 0.02m
- MaxAcceleration = 0.2m
- LookbackPeriod = 20
- DeviationMultiplier = 2m
- CandleType = TimeSpan.FromMinutes(5)
- Filters:
- Category: Breakout
- Direction: Both
- Indicators: Parabolic
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Short-term
- Seasonality: No
- Neural Networks: No
- Divergence: No
- Risk Level: Medium