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Parabolic SAR trading forex strategy

This forex strategy utilizes multitude of tools in more complex way. All of them are working together to identify suitable entry points and following the winning trade for as long as possible. Almost always, strategy remains in trade. It uses tight stop loss that is being trailed with each closed SAR dot.

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The system uses moving averages (exponential) to identify main trend. Once we know that market direction we will be looking for price moving outside the envelopes boundaries. Entry is than confirmed by SAR and followed by SAR trail stop.

The system was tested for profitability on historical data since 2003 with positive results. It is brought to you with free expert advisor by

Used forex tools and indicators

Exponential moving averages (EMA 200,600). Position of EMA relative to each other will determine the dominant trend.

Envelopes (period 40, deviation 0,1). Price must move outside the envelopes tunnel. To do so price must move rapidly with sufficient momentum.

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SAR parabolic (step 0,1, max 0,1). Entry is confirmed by SAR position. After the entry we use indicator to adjust the trailing stop with each candle close.

Big candle signal (40 – 150 pips). Candle with defined minimum and maximum body range. It is used to confirm immediate momentum and signal frequency.

Trailing stop. SAR indicator based. Additional distance 40 pips is applied.

Forex strategy rules


EMA fast trending below EMA slow.

Price moves below the bottom envelopes line.

SAR dot closes above the price.

We enter short on signal candle close (range 40-150 pips). Placing trailing stop at the last closed SAR dot + additional distance 40 pips.


EMA fast trending above EMA slow.

Price moves above the upper envelopes line.

SAR dot closes below the price.

We enter long on signal candle close (range 40-150 pips). Placing trailing stop at the last closed SAR dot - additional distance 40 pips.


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For best results, use this forex strategy with one of our trusted forex brokers

(STP/ECN with MT4 bridge).

To win you must trade with broker on your side.

Disclaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.



“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 


Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

—  Marian, Proprietor of

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