Strategy with parabolic sar verfication

#1
Hello to all Trading Gurus out there..,

i'm a newbie trader with small investment 25k ,
My broker suggested me a strategy with "parabolic sar"
i found some small drawbacks in it .. can you guys help rectify it ...?


Here goes the strategy...

he told me to aim for small minimum profit points in commodities .. like 40 points in silver.. 20 in gold... 5 in crude.. 0.10 in lead etc....

so as a starter i would get a reasonable amount in every small point trade excluding brokerage ... and i have to repeat this small trades until i reach my daily goal .. lets say 1000/-

so in getting this small point trades he suggest me to follow the "parabolic sar"


example below


as shown i have to put a stop loss order for a sell in the support point near the candle .. if it cuts and takes resistance it will move down and trigger my order and i will get my 0.10 points in lead ....

i've been paper trading for the past 3 days in this strategy this actually works everytime.... but.....

sometimes like this image shown here


it cuts the support triggers the order but doesn't move as planned ...

this happenes like 3 times in 10 trades .. how can i avoid these .... is there any other method that can be combined with this strategy here .. to improve efficiency here ....? please help... :(
 

Rish

Well-Known Member
#2
Hello to all Trading Gurus out there..,

i'm a newbie trader with small investment 25k ,
My broker suggested me a strategy with "parabolic sar"
i found some small drawbacks in it .. can you guys help rectify it ...?


Here goes the strategy...

he told me to aim for small minimum profit points in commodities .. like 40 points in silver.. 20 in gold... 5 in crude.. 0.10 in lead etc....

so as a starter i would get a reasonable amount in every small point trade excluding brokerage ... and i have to repeat this small trades until i reach my daily goal .. lets say 1000/-

so in getting this small point trades he suggest me to follow the "parabolic sar"


example below


as shown i have to put a stop loss order for a sell in the support point near the candle .. if it cuts and takes resistance it will move down and trigger my order and i will get my 0.10 points in lead ....

i've been paper trading for the past 3 days in this strategy this actually works everytime.... but.....

sometimes like this image shown here


it cuts the support triggers the order but doesn't move as planned ...

this happenes like 3 times in 10 trades .. how can i avoid these .... is there any other method that can be combined with this strategy here .. to improve efficiency here ....? please help... :(
My first point : with Rs.25000/- are you expecting Rs.1000/ - everyday..?

Second Point : The person who has told you to use SAR is working for a broking office to generate revenue for the company not for you and he may not be your well wisher....

Third Point : First learn atleast 3 or 6 months...then trade...don't expect 60% or 70% return on your money everymonth (not at all possible).

All are my experience....decision is yours...all the best...
 
#3
My first point : with Rs.25000/- are you expecting Rs.1000/ - everyday..?

Second Point : The person who has told you to use SAR is working for a broking office to generate revenue for the company not for you and he may not be your well wisher....

Third Point : First learn atleast 3 or 6 months...then trade...don't expect 60% or 70% return on your money everymonth (not at all possible).

All are my experience....decision is yours...all the best...
i'm aware of that this strategy involves lots of brokerage ... and i started this thread whether there is any additional strategies to improve this method..

and i 'm not expecting 70 % return . i just said 1000 as an example ....


ALL I NEED IS SOME PEOPLE EXPLAINING THIS STRATEGY NOT MONEY MANAGEMENT
 
#5
i'm aware of that this strategy involves lots of brokerage ... and i started this thread whether there is any additional strategies to improve this method..

and i 'm not expecting 70 % return . i just said 1000 as an example ....


ALL I NEED IS SOME PEOPLE EXPLAINING THIS STRATEGY NOT MONEY MANAGEMENT
0.1 point target in Lead is really less, if you consider consider brokerage + slippages, overhead cost will come to 0.1 to 0.2, then minus this from your profit & R:R ratio will matter most.

Good luck for your trading..:thumb:
 
#6
0.1 point target in Lead is really less, if you consider consider brokerage + slippages, overhead cost will come to 0.1 to 0.2, then minus this from your profit & R:R ratio will matter most.

Good luck for your trading..:thumb:
yes i'm aware of that ... 0.10 points profit will be 500 rupees brokerage will be 239 and my profit will be 261 .... so doing 4 trades like this in a day will result in 1000 profit thats his strategy ....

just can you tell me how to avoid those small SAR problem i mentioned previously ....?
 
#7
yogan ji this parabolic sar is just waste of time,only your broker will earn in month end.
and you can add good EMA like 34 or 89 for more confirmed trades for improving this sar bt it will add merely 5% accuracy nothing much because of ur sar based trading..
good luck
 
#8
yogan ji this parabolic sar is just waste of time,only your broker will earn in month end.
and you can add good EMA like 34 or 89 for more confirmed trades for improving this sar bt it will add merely 5% accuracy nothing much because of ur sar based trading..
good luck
thanks for the advice ... can you tell me what is this " EMA 34 or 89 " ...?
 
#9
Yogan ji EMA means exponential moving average and 34 or 89 are no. of periods for which we are taking average...so just plot 34 EMA on your chart take only and only buy entries if prices are trading above 34 EMA and exit if you get sell signal dnt again sell that, and if trading below 34 EMA then take only sell entries.... in your simple sar trading you trade both buy and sell irrespective of trend....
 

amitrandive

Well-Known Member
#10
i'm aware of that this strategy involves lots of brokerage ... and i started this thread whether there is any additional strategies to improve this method..

and i 'm not expecting 70 % return . i just said 1000 as an example ....


ALL I NEED IS SOME PEOPLE EXPLAINING THIS STRATEGY NOT MONEY MANAGEMENT
yogan

If you are new to trading.I would advise you to first learn patience and learn to respect seniors.:mad::mad::mad:
After all you are asking doubts to them.Just because this is a free forum does not mean you disrespect anyone giving you answers.
If you know all about brokerages,slippages and money management , you would not be asking these questions.
Indeed I am using harsh words,but you need to reflect on what I have said.
And using Big Bold fonts is the last thing to do.