Free Forex MQL Training

It is common to use Parabolic SAR indicator to exit trades. One approach is to build a trailing stop with the help of this indicator.

Let's assume that you have entered a short trade on GBP/USD. For example you have recognized a breakout below the support line of a descending triangle and therefore have entered a short trade (see image).

You may now use Parabolic SAR points as trailing stop. In this method the Stop Loss for the current bar/candle is the SAR point of the previous bar. As you can see in the image the SAR points are initially far away from the candlesticks but they gradually approach them. The price eventually reaches the last SAR point and trade closes with profit.

SAR Trailing Stop Expert Advisor

I have developed an Expert Advisor that automates the process of using Parabolic SAR as a trailing stop.

For example if you have entered a EUR/USD trade you may attach this EA to a EUR/USD chart. Make sure to set the time frame based on your trading strategy. The EA then moves Stop Loss according to SAR points if the price moves in your favour.

If you are trading with another EA then you need to open two instances of the same chart. Attach your main EA to one chart and the SAR_TS EA to the second chart.

Click here to download a demo version of this EA. You may use this EA on as many demo accounts for as long as you want. You may also purchase the commercial version of this EA for only $4.99. Click here to purchase the commercial version of this EA which you can use on live accounts as well..

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Important: I have updated the EA on Feb 22, 2009 11:00 pm EST. If you have downloaded the EA prior to this time make sure to click here and download it again. The new EA addresses some concerns raised by one of our good readers. Click here for more information.