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.
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 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.
Still, have no trading account yet? Open an account at one of my trusted brokers suitable for algorithmic trading completely for free and start testing today!
This post contains affiliate links. If you use these links to register at one of the trusted brokers, I may earn a commission. This helps me to create more free content for you. Thanks!