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Most people don't understand the knowledge points of this article "How to realize SAR quantitative trading strategy in My language", so Xiaobian summarizes the following contents for everyone. The contents are detailed, the steps are clear, and they have certain reference value. I hope everyone can gain something after reading this article. Let's take a look at this article "How to realize SAR quantitative trading strategy in My language".

SAR indicators

Parabolic SAR indicators attempt to give traders an edge by highlighting the direction of asset movement as well as providing entry and exit points. In this article, we'll cover the basics of this metric and show you how to incorporate it into your quantitative trading strategy. We will also look at some of the shortcomings of this indicator.

key points

by J. The parabolic SAR indicator developed by Welles Wilder Jr. is used by traders to determine trend direction and potential price reversals. Use the definition of trailing stops and price reversals for the "SAR" technical indicator to identify appropriate opening and closing points. The Parabolic SAR indicator is displayed on the chart as a series of points that are either above or below the price of the asset to be traded, depending on the direction in which the price is moving.

When the price is trending upward, the dot is below the price and when trending downward, the dot is above the price.

SAR indicator for trading

Parabolic SAR is a technical analysis indicator used to determine the price direction of an asset and draw attention to changes in price direction. Parabolic SAR is sometimes referred to as a "stop-and-reverse system," developed by J. Developed by Welles Wilder Jr.

On the chart, the indicator appears as a series of points above or below the price bar. A point below the price is considered a bullish signal. Instead, a point above the price is used to indicate that the short is under control and that the volume is likely to remain falling. When these dots flip, it indicates that a potential change in price direction is underway. For example, if a dot is above the price, when those dots reverse to below the price, it may indicate that the price will rise further.

As the price of the underlying trade rises, the points will rise, first slowly, then accelerate and trend faster. As the trend develops, SAR starts to get a little faster, and those points catch up with prices very quickly.

The chart below shows that this indicator is suitable for taking profits in trends, but it can lead to many false signals when prices move sideways or trade in volatile markets. This indicator will enable traders to trade correctly when prices rise. When prices move sideways, traders should expect more losses and/or very small profits.

Chart showing parabolic SAR example

The chart below shows that in a downtrend, this indicator will keep traders short (or long) until prices begin to reverse or rebound. In this example, the indicator allows traders to re-enter the market when the downtrend resumes.

Parabolic SAR is also a good way to set stop loss orders. When the trade is up, move stops to match the parabolic SAR indicator. The same concept applies to short trades-as prices fall, set stops above to match indicators.

This indicator is mechanical and always sends new signals to go long or short. It is up to the trader to decide which trades to make and which to leave alone. Therefore, we will match the stage high and low points to match the judgment, which will improve the winning rate greatly.

SAR Quantification Trading Strategy Implemented on Inventors Quantification Platform

Strategy Name: SAR and Price High and Low Strategy

Data cycle: 1H, etc.

Strategy support: commodity futures, digital currency spot, digital currency futures

My language version:

LOTS:=IF(IsCryptoCurrency, IF(IsCryptoCurrency=1, CryptoCurrencyTradeAmount, MAX(1, INTPART(CryptoCurrencyTradeAmount))), MAX(1,INTPART(MONEYTOT/(O*UNIT*0.1))));SARLINE:=SAR(4,2,20);B1:=SARLINE>0;S1:=SARLINE=HHV(CLOSE,N);S2:=LOWN AND B1 AND B2;SELLK:=BARPOS>N AND S1 AND S2;SELLY:=S1 AND S2 AND BKHIGH>BKPRICE*(1+0.01*SLOSS);BUYY:=B1 AND B2 AND SKLOW

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