SAR Trading System

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The SAR Trading System demonstrates the functionality of the Stop and Reversal (SAR) indicator, originally designed by Welles Wilder. This expert advisor monitors open positions and dynamically adjusts the stop loss using parabolic acceleration, as defined by the parameters of the parabolic system.

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With each new bar, the EA adjusts the stop loss based on the parabolic calculation. The acceleration factor ensures that the stop loss adjustment increases progressively, resulting in a noticeable acceleration of the stop loss movement.

While Wilder intended the SAR for position reversal when the parabolic touches the current price, this system utilizes the SAR as a sophisticated trailing stop.

To illustrate the stop loss trailing mechanism, the EA includes an option to open random buy or sell positions. When the 'Random Trade Toggle' is set to 'true', the EA initiates random trades; otherwise, it refrains from opening positions if set to 'false'.

Notably, the parabolic system remains active even when the EA is not opening positions, allowing it to trail positions opened manually or by other experts.

Additionally, the EA incorporates a delay feature, enabling users to postpone the opening of new positions for a specified duration, controlled by the timer.


External Parameters:

- Initial Stop-Loss (points): Sets the initial stop loss value before the parabolic trailing begins.

- SAR Acceleration Factor Increment Step: Determines the increment of the parabolic acceleration factor.

- SAR Acceleration Factor Max. Value: Specifies the maximum value of the parabolic acceleration factor.

- Random Trade Toggle: Enables or disables random position opening. 'True' allows manual trading, while 'False' prevents the EA from opening positions.

- Timer Frequency (sec): Sets the delay before opening a new trade.

The system calculates a new stop loss value with each new bar. For long positions, the calculation is:
SAR(n+1) = SAR(n) + AF x [EP - SAR(n)]

And for short positions:
SAR(n+1) = SAR(n) - AF x [SAR(n) - EP]

Where:

- SAR(n+1): Stop loss level at the new (n+1) bar.

- SAR(n): Stop loss level at the previous (n) bar.

- EP (Extremum Point): New maximum (long position) or minimum (short position) price recorded since the trailing stop initiation.

- AF (Acceleration Factor): Coefficient that increases by a constant step (increment of the acceleration factor) with each new bar where the price reaches a new extremum. The acceleration factor continues to increase until it reaches its maximum value.

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#property copyright "robotfx"
#property link "https://robotfx.org"
#property version    "1.00"
input int            timertime=300;        // timer frequency (sec)
input int            stoploss = 10;       // initial stop-loss (points)
input double         afstep = 0.02;       // sar acceleration factor increment step
input double         afcap = 0.2;         // sar acceleration factor max. value
input bool           randomtrade = true;  // random trade toggle
int                  tradevalue;
long                 stoplevel;

.......

• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.