Very Simple 1hr PSAR System | Forex Factory

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Very Simple 1hr PSAR System

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  • Is this system profitable?
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  • #1
  • First Post: Edited Jan 25, 2010 12:56am Jan 24, 2010 4:34am | Edited Jan 25, 2010 12:56am
This is my first system that I feel confident in sharing. I have been back testing it and this week I will begin forward testing with real money. I will also post my trades. Feel free to share any opinions or suggestions for improvements.

1hr Chart
PSAR (standard settings)
5ema
10ema
ATR(100)

Entry: When PSAR has changed sides and 5 and 10 ema's cross (in the same direction) within the first two bars.

Stop: PSAR or 2x ATR(100). Which ever is less.

Trailing Stop: PSAR

Exit: Trailing stop is hit or 2x ATR(100) target.

Disrection: Trades can be taken in either direction but when there is a very strong or apparent trend they should only be taken in that direction. Do not enter if the cross happens on an unusually large candle.

Risk: Trades are aiming for a 1:1 risk/reward. Looking for a higher win percentage rather than a higher profit target.
  • #2
  • Jan 24, 2010 4:51am Jan 24, 2010 4:51am
Quoting marolam
This is my first system that I feel confident in sharing. I have been back testing it and this week I will begin forward testing with real money. I will also post my trades. Feel free to share any opinions or suggestions for improvements.

1hr Chart
PSAR (standard settings)
5ema
10ema

Entry: When PSAR has changed sides and 5 and 10 ema's cross (in the same direction) within the first two bars.

Stop: PSAR

Trailing Stop: PSAR

Exit: Trailing stop is hit or PSAR changes sides.
Used to trade something very similar on the 15M...great when trending, hideous when ranging. Can post:

1. A chart showing entries and exits
2. Results of backtest

Looking forward to it!
  • #3
  • Jan 24, 2010 6:44am Jan 24, 2010 6:44am
Hello,

with all the respect due to you to share your mind about a system, I would say that plenty of systems works well untill a "storm" (range) happens.

I doubt the PSAR will be effective in long term...

Anyway as I told, I respect your initiative to share your thought, respect mine and keep going, I might be wrong...

Regards,
Billy
  • #4
  • Jan 24, 2010 9:53am Jan 24, 2010 9:53am
Yes, I know that ranges are not good for PSAR. This is why it is combined with the EMA cross. The combination seems to filter out a large number of trades when rangebound. Also, using it as a trailing stop mitigates risk. I believe this system will be profitable. We'll just have to wait and see.
  • #5
  • Edited 10:46am Jan 24, 2010 10:08am | Edited 10:46am
Well, I do not believe either on the EMA CROSS, but as I said before, I might be wrong, the most important is that you get it right all by yourself.

Once again, that you take from your time to share your thought here is a very good contribution, I try to be as much humble as possible.

I respect you much for that especially because I think you are mistaken.

Sorry for my english, it is not my native language.

Regards,
Billy
  • #6
  • Feb 8, 2010 6:15am Feb 8, 2010 6:15am
I'm using PSAR for trailing stop losses. I set stop loss = PSAR value +/- some delta. It perfect works for some strategies. Can be mostly applied for short-term positions. Don't think psar is good for opening as it can give many false signals.
  • #7
  • Feb 8, 2010 12:05pm Feb 8, 2010 12:05pm
Quoting marolam
This is my first system that I feel confident in sharing. I have been back testing it and this week I will begin forward testing with real money. I will also post my trades. Feel free to share any opinions or suggestions for improvements.

1hr Chart
PSAR (standard settings)
5ema
10ema
ATR(100)

Entry: When PSAR has changed sides and 5 and 10 ema's cross (in the same direction) within the first two bars.

Stop: PSAR or 2x ATR(100). Which ever is less.

Trailing Stop: PSAR

Exit: Trailing stop is hit or 2x ATR(100) target.

Disrection:...
I tried something very similar and just about every combination using psar dots.
You will get taken apart in a range with psar dots.
If you ever come across a good filter for psar dots that works, I am all ears.
  • #8
  • Feb 8, 2010 5:09pm Feb 8, 2010 5:09pm
There is nothing special, but thanks for share with us

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ADX trading rules
  • #9
  • Last Post: Mar 11, 2010 12:13am Mar 11, 2010 12:13am
This is a good system.But this strategy will struggle during tight ranging market , therefore you should use a filter for that. Also, it will increase your win rate if you trade only following the main trend or the main trend on a higher Time Frame, 4Hrs TF.
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