Parabolic SAR Strategy + ADX Filter by rovac
By rovac
Performance Metrics
- Author: rovac
- Symbol: BINANCE:BTCUSDT
- Timeframe: 15 minutes
- Net P&L: +49,262.44 USDT (+4.92%)
- Win Rate: 39.9%
- Profit Factor: 1.16
- Max Drawdown: 16,370.46 USDT (1.57%)
- Total Trades: 893
Description
OverviewThis strategy combines the Parabolic SAR trend-following system with an ADX strength filter to trade only during meaningful trends while avoiding low-volatility market conditions. The goal is to capture directional moves while filtering out noise and consolidations.Core ConceptParabolic SAR is used to detect trend reversals and generate directional signals. However, PSAR alone often produces false signals during sideways markets. To solve this, the Average Directional Index (ADX) is used as a trend strength filter.Trades are only allowed when the market shows sufficient directional strength.Strategy PurposeThis system attempts to solve three common problems of trend strategies:• Avoiding sideways markets (ADX 60 exit)Best Market ConditionsThis strategy tends to perform best on:• trending markets• crypto and forex pairs• higher volatility environments• timeframes from 5m to 4H+