Parabolic SAR is one of the most popular indicators for beginners. The reason for this is because when the Parabolic SAR is used, entry timing, profit-taking, and cutting losses become easier and more precise. The MT4 EA (automatic trading software) combines the Parabolic SAR with the ADX indicator, which is useful for trend analysis.

This EA is based on our unique trading strategy. You can read more about it in our trading strategies section here:

https://www.fxtradingrevolution.com/forex-blog/trend-trading-with-the-adx-and-the-parabolic-sar

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The result of the backtest on the Dollar-Yen 4-hour chart. The period is from September 2013 to September 2019. Use “5.0 for ADX calculation”, 15.0 for “ADX line”, 0.07 for “step”, 0.1 for “maximum”. Other values ​​are the default values

Indicators used:

  • Parabolic ASR
  • ADX
  • ATR

Entry Logic

This EA will place a buy order if the following conditions are met:
  • ADX exceeds ADX line (specified by parameter)
  • D + exceeds D-
  • Parabolic SAR reverses to bullish and closes

A sell order is placed when the following conditions are met:
  • ADX exceeds ADX line (specified by parameter)
  • D + is below D-
  • Parabolic SAR turns bearish

This entry logic is only confirmed when a new candlestick is created. In addition, the value of the previous candlestick and its indicator is the target.

Exit Logic

This EA will close the buy order if any of the following conditions are met:
  • ADX is below the ADX line and D + is below D-
  • Price touched Parabolic SAR

The closing conditions for an active sell order are either of the following:
  • ADX is below the ADX line and D + is above D-
  • Price touched Parabolic SAR

By the way, it is also possible to set take profit and stop loss via the parameters. By default, take profit and stop-loss are set to zero.

A stop-loss based on the ATR (Average True Range) can also be used.

Conclusion:
Although it may be difficult to trade with the Parabolic SAR alone, this EA increases the winning rate by using the ADX to determine trends. It also has a big advantage that the point where trades should be closed is objective and obvious because it uses the Parabolic SAR for that.

Compatibility: MT4

Parameters:

Basic parameters

  • TakeProfit
  • StopLoss
  • UseATRStop  -  Defines whether the EA uses ATR Stop or not. If true, the EA sets the stop-loss based on ATR.
  • ATR  -  Multiplier of ATR Stop.
  • Lots
  • TrailingStop

Indicator parameters
  • ADXPeriod
  • ADXLine  -  Initial value is 25
  • step  -  Defines the rate-of-change of the PASR
  • maximum  -  Defines the maximum of the PASR

Note: Backtest results may be optimized. Also, the backtest results may differ from the trading results when using a live trading account. Please understand this point before you use the EA.

Download the "ADX_PSAR" MT4 robot (Expert Advisor) from the button below

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Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Try WinRAR for Windows or The Unarchiver for Mac .


Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.





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