PSAR with ATR Trailing Stop + SMA Filter — Strategy by kostastrovas
By kostastrovas
Performance Metrics
- Author: kostastrovas
- Symbol: FX:GBPUSD
- Timeframe: 1 hour
- Net P&L: +91,009.15 USD (+9.05%)
- Win Rate: 35.0%
- Profit Factor: 1.236
- Max Drawdown: 53,124.28 USD (5.00%)
- Total Trades: 206
Description
📈 Strategy Overview: PSAR + 6×ATR Trailing Stop with SMA FilterThis strategy is built around the principle of “Cut the losers, let the winners run” — a disciplined, trend-following approach that combines the Parabolic SAR indicator with dynamic risk management and a Simple Moving Average (SMA) trend filter.🔍 Strategy LogicTrend Filter Trades are only taken in the direction of the prevailing trend, defined by a user-selected SMA (default: 100).✅ Long trades only when price is above the SMA✅ Short trades only when price is below the SMAEntry Signal: A trade is triggered when the Parabolic SAR flips to the opposite side of the price bars, signaling a potential trend reversal.Stop Loss: The stop loss is dynamically set at 6×ATR from the entry price. This adapts to market volatility and is recalculated every bar — effectively acting as a trailing stop.Exit Logic: There is no fixed take profit. The trade remains open until the trailing stop is hit — allowing winners to run and losers to be cut quickly.Risk Management: Each trade risks 0.5% of total equity, ensuring consistent position sizing and capital preservation.📊 Visual ElementsPSAR dots mark trend direction changesSMA line shows the broader trend filterTrailing stop crosses (with 50% opacity) indicate the current stop level without cluttering the chart⚙️ Customizable InputsPSAR parameters: Start, Increment, MaximumATR length and multiplierSMA lengthRisk percentage per tradeThis strategy is ideal for traders who want to stay aligned with the trend, automate disciplined exits, and avoid emotional decision-making. Clean, simple, and powerful.Wishing you calm and successful trades!