stelaraX - PSAR Trend Strategy

stelaraX – PSAR Trend Strategy

stelaraX – PSAR Trend Strategy is a rule-based trend-following strategy built around the Parabolic SAR indicator. The strategy automatically evaluates trend direction by tracking the position of the PSAR relative to price and enters positions when a confirmed trend flip occurs.

The logic is intentionally minimal and transparent, making the strategy suitable for backtesting, parameter studies, and trend behavior analysis across different markets and timeframes.

Core logic

The strategy calculates the Parabolic SAR using three user-defined parameters:

* start value
* increment
* maximum acceleration factor

A trend flip is defined as:

* bullish when PSAR switches from above price to below price
* bearish when PSAR switches from below price to above price

When a bullish flip is detected, the strategy opens a long position.
When a bearish flip is detected, the strategy opens a short position.

Position sizing is based on a percentage of account equity and is set to 100 percent by default.

Visualization

The script plots the Parabolic SAR directly on the chart using circular markers:

* green when PSAR is below price
* red when PSAR is above price

Buy and sell labels are placed on the chart at the moment a trend flip occurs to clearly mark entry points.

Note: To hide strategy order arrows, disable “Show Orders on Chart” in the script settings under Properties.

Alerts

Alert conditions are included for:

* buy signals when PSAR flips bullish
* sell signals when PSAR flips bearish

Alerts use the active ticker symbol and trigger only on confirmed flip conditions.

Use case

This strategy is intended for:

* trend-following backtests
* studying Parabolic SAR trend behavior
* evaluating PSAR parameter sensitivity

Disclaimer

This strategy is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.