Parabolic SAR
This EA uses the Parabolic SAR indicator to identify trend direction and generate entry signals. It opens buy positions when SAR dots flip below price and sell positions when dots flip above price, riding trends until the SAR reverses. The strategy is a classic trend-following system that uses the built-in MT5 Parabolic SAR indicator for both entry and exit signals.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
| Symbol | P&L | Annual | Max DD | Trades | Win rate | Sharpe | Recovery | Losing streak | Per trade | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| EURUSD | +3.59% | +3.11% | 2.82% | 120 | 48.30% | 0.82 | 1.27 | 7 | +$2.99 | Reliable |
| GBPUSD | -0.55% | -0.48% | 5.48% | 125 | 47.60% | -0.06 | -0.10 | 7 | −$0.25 | Reliable |
| USDJPY | -6.94% | -6.06% | 8.21% | 124 | 43.10% | -1.44 | -0.84 | 8 | −$5.77 | Reliable |
| XAUUSD | -29.48% | -25.06% | 68.56% | 136 | 45.90% | 0.17 | -0.43 | 6 | −$20.00 | Reliable |
Profitable on 1 of 4 markets with reliable results.
Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.
Against the other Trend Following EAs with a reliable result on the same market: EURUSD: better than 78% of 95 · GBPUSD: better than 42% of 95 · USDJPY: better than 7% of 95 · XAUUSD: better than 31% of 96
Month by month
| Market | Months with a gain | Best month | Worst month |
|---|---|---|---|
| EURUSD | 77% | +1.48% 2026-03 | -1.82% 2026-01 |
| GBPUSD | 46% | +2.73% 2026-06 | -1.91% 2026-01 |
| USDJPY | 31% | +2.06% 2026-02 | -3.50% 2026-07 |
| XAUUSD | 38% | +42.00% 2026-07 | -36.23% 2026-01 |
From the backtest equity curve, sampled about every two days; only reliable results.
Blow-up risk: No blow-up pattern found
None of the usual blow-up patterns were found in the code, and the account was not stopped out in our backtests. That is not a guarantee: any EA can lose money.
High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →
Strategy analysis
The core strategy of this EA is based on the Parabolic SAR (Stop and Reverse) indicator, a classic trend-following tool. Entry conditions: a buy signal is generated when SAR dots flip from above price to below, and a sell signal when they flip from below to above, indicating a trend direction change. Exit conditions also rely on the SAR indicator: positions are closed when the SAR signal reverses against the held position, meaning the SAR reversal serves as both the exit for the old position and entry for a new one, forming a Stop and Reverse mechanism. Position sizing typically uses a fixed lot size (Lots parameter), with no dynamic position adjustment or equity-proportional sizing logic. Money management relies on the SAR as a trailing stop mechanism for risk control, but without an independent stop loss the risk exposure could be significant. The SAR Step and Maximum parameters directly determine the indicator's sensitivity — a larger step makes the indicator more responsive to price changes but also increases the likelihood of false signals.
Strengths
- Clear and concise strategy logic based on a well-established technical indicator, easy to understand and verify
- Parabolic SAR inherently provides trailing stop functionality, effectively locking in trend profits
- Stop and Reverse mechanism ensures always being in a position, never missing major trend moves
- Few parameters mean limited optimization space and lower risk of overfitting
Weaknesses
- SAR frequently reverses in ranging markets, generating numerous false signals and consecutive losses
- Fixed lot sizing lacks money management, unable to dynamically adjust risk based on account size
- SAR indicator has notable lag, entering trends after they have already moved significantly
- Without an independent stop loss, the EA may suffer massive losses during sudden market events
Possible improvements
- Add a trend filter (e.g., ADX or long-period moving average) to suppress SAR false signals during ranging markets
- Implement dynamic position sizing based on account equity percentage instead of fixed lots
- Add ATR-adaptive stop loss that adjusts stop distance based on market volatility
Risk assessment
Overall risk: Medium
- Frequent SAR reversals in ranging markets cause consecutive open/close cycles, accumulating spread and commission losses
- Without independent stop loss, losses during trend reversals may far exceed expectations
- Fixed lot sizing ignores account size, potentially causing excessive leverage on small accounts
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
Lots | 0.1 | Fixed lot size per trade |
SAR_Step | 0.02 | SAR acceleration factor step |
SAR_Maximum | 0.2 | SAR acceleration factor maximum |
StopLoss | 0 | Auto stop loss in points |
TakeProfit | 0 | Auto take profit in points |
TrailingStop | 0 | Enable trailing stop function |
MagicNumber | 12345 | EA magic number; 0 monitors all orders |
Timeframe | 0 | Indicator calculation timeframe, 0 to disable |
Similar Trend Following EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.