2MA+SAR-Breakout Strategy

2MA+SAR Breakout is an advanced strategy concept using two Exponential Moving Averages, MA Fast and MA SLow and Parabolic SAR indicator. To better understand the logic of this strategy, I would recommend examining both components of this strategy individually.

  1. MA-Crossover Strategy
  2. ParabolicSAR-Breakout Strategy

Strategy Logic: The start of the trend can be detected when the Parabolic SAR indicator changes its orientation. Based on the direction of the Parabolic SAR change/flip, and the current setup of the short-term moving average MA Fast and long-term moving average MA Slow we can distinguish:

Buy Signal: MA Fast is above the MA Slow and the Parabolic SAR indicator flips below the current price.

Sell Signal: MA Fast is below the MA Slow and the Parabolic SAR indicator flips above the current price.

Close Signal: Opposite Parabolic SAR flip occurs or the MA Fast crosses The MA Slow.

2MA+SAR-Breakout Entry Signals

2MA+SAR-Breakout Strategy Inputs:

  • UniqueStrategyNumber – Unique strategy identifier (Magic Number), each running strategy should have a different UniqueStrategyNumber
  • MASlowPeriod – Period settings for the long-term Exponential Moving Average
  • MAFastPeriod – Period settings for the short-term Exponential Moving Average
  • ParabolicSARStep – Settings for the ParabolicSAR Step value
  • ParabolicSARMaximum– Settings for the ParabolicSAR Max value
  • OrderSizeLots – Fixed order Size in Lots
  • StopLossPoints – Stop Loss distance from the entry price in Points (0 = No SL is set)
  • TakeProfitPoints – Take Profit distance from the entry price in Points (0 = No TP is set)
  • TrailingStopPoints – Trailing Stop distance in Points. When the Stop Loss distance from the current price is higher, the Stop Loss is adjusted closer to fit the preset level (0 = No TS is set)

Point – Minimal change in the asset quotation (usually the last digit)

Pip = 10 Points (regarding FX pairs)

Get the 2MA+SAR-Breakout forex strategy:

Did you achieve the expected results in the backtest? Feel free to share your findings and opinions here in the discussion.

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