Profitable Parabolic” trading strategy based on a Moving Average - GoTrade4me


It is a strategy that utilizes a parabolic stop-and-reverse (SAR) indicator in conjunction with a moving average indicator to generate buy and sell signals. The strategy involves placing a stop-loss order at the parabolic SAR level and a take-profit order at the moving average level. It is a trend-following strategy that is used to identify and capitalize on trends in financial markets.

Here are the rules for the “Profit Parabolic” trading strategy:

Buy Trade Entry:

  • The moving average line must be rising
  • The price must be above the moving average line
  • The parabolic SAR must be below the price

Sell Trade Entry:

  • The moving average line must be falling
  • The price must be below the moving average line
  • The parabolic SAR must be above the price

Buy Trade Exit:

  • The parabolic SAR must cross above the price
  • The price must fall below the moving average line

Sell Trade Exit:

  • The parabolic SAR must cross below the price
  • The price must rise above the moving average line

It is important to note that these are the basic rules for using the “Profit Parabolic” trading strategy, and traders may choose to use additional technical indicators or incorporate other elements of risk management, such as using stop-loss orders. It is also important to keep in mind that past performance is not indicative of future results, and that all trading carries some level of risk.

What kind of money management strategy should be followed for the above trading strategy so as to use it on a $1000 account?

A money management strategy that can be used for a trading strategy with a $1000 account is to use a fixed percentage risk per trade. This means that a certain percentage of the account balance, such as 2-5%, is risked on each trade. This can help to protect the account from large losses and ensure that the account has the potential to grow over time. Additionally, it is important to have a proper risk management plan in place, such as using stop loss orders, and to practice discipline in sticking to the plan.

How can I grow this $1000 account fast using the above strategy?

Growing a $1000 account quickly using a trading strategy may be challenging and it is important to have realistic expectations. There is no guarantee of fast or substantial growth and the potential for significant losses exists as well. However, there are a few things you can do to potentially increase the growth of your account:

  1. Use leverage wisely: Leverage allows you to trade with more capital than you have in your account, but it also increases the potential for loss. It’s important to use leverage wisely and only trade within your means.
  2. Be selective in your trades: Focus on high-probability trades that have the potential for large returns. Avoid low-probability trades that have a higher risk of loss.
  3. Have a proper risk management plan: It is important to have a plan in place to manage your risk, such as using stop loss orders and limiting your exposure to any one trade.
  4. Practice discipline: Stick to your trading plan and resist the urge to deviate from it, especially during periods of losses or volatility.
  5. Diversify your portfolio: Diversifying your portfolio across different markets, assets and strategies can help to reduce the overall risk of your portfolio.

It is important to remember that trading carries a risk and it is important to invest only what you can afford to lose.

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