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Strategies / Trend / Parabolic SAR Trend Confirmation

Parabolic SAR Trend Confirmation

The strategy buys when price is above Parabolic SAR and SMA(50), with MACD and RSI(7) confirming, and only when Choppiness(7) is below 50. It sells short on the mirror conditions, with a 3% stop and target from entry.

TrendLong & shortSwingUSD/JPYDaily
1.28Profit factor
2,936,590Net profit USD
47.17%Win rate
689Trades
-682,110Max drawdown
4,262Avg trade

Best run of 8. USD/JPY, Daily, spread 1, from run pf:2026-10-12-USDJPY-D.tsv:27.

Entry rules, long

  2. The MACD line (EMA 12 minus EMA 26) is at least 0 and RSI(7) is at least 50.
  3. Choppiness(7) must be below 50, and the strategy buys one contract when flat.

Entry rules, short

  2. The MACD line is at most 0 and RSI(7) is at most 50.
  3. Choppiness(7) must be below 50, and the strategy sells short one contract when flat.

Exit rules

  2. An opposite signal reverses the position.

Test conditions

PeriodUp to 2026-10-12
InstrumentUSD/JPY, Daily
Spread1 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest runDaily1.28 68947.172,936,590 USD-682,110
EUR/USDDaily1.26 63747.41201,829 USD-41,577
Gold4 hours1.16 1,22840.803,031 EUR-747
USD/JPY30 minn/a 4,84532.49642,920 USD-206,360
USD/JPY1 hourn/a 3,52733.43367,830 USD-295,510
Silver4 hoursn/a 1,87346.8238,322 USD-14,742
Gold1 hourn/a 3,46633.213,243 EUR-1,063
GoldDailyn/a 1,14947.171,329 EUR-1,049

Charts

Results by run

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// Parabolic SAR Trend Confirmation
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE ci = 100

psar = SAR[0.02, 0.02, 0.2]
mm = Average[50](close)
myMacd = ExponentialAverage[12](close) - ExponentialAverage[26](close)
myRsi = RSI[7](close)
rng = highest[7](high) - lowest[7](low)

20 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

Parabolic SARSMAMACDRSITrue Range
Read this firstKnown weaknesses2 points
  • Results include the spread only. Commissions and overnight financing are not included.
  • The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run Parabolic SAR Trend Confirmation in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 8 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 1.28 over 689 trades.

How large was the drawdown?

The best run had a maximum drawdown of 682,110 USD at the tested position size, against a net result of 2,936,590 USD.

Does it trade long, short or both?

It trades both long and short.

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Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.comStatsDocs