PARABOLIC SAR Scalping Strategy For 1 and 5 Minute chart

hey traders today i have a new scalping strategy for you and for this strategy we are using the parabolic sar indicator and the ema and the ema's just clear purely to tell us the trend this is a pretty basic strategy but just for the purpose of all the testing that i'm doing i had some good results with it in the past so let's check it out first let's add indicators um let's add two emas in the end we are gonna have three indicators so you can still use it for the free version which is important i guess and let's use the the parabolic sar it's a built-in indicator first let's change some settings because everything is blue and you can't really see it on this background so go to the settings of the sar change the crosses to white make it circle at least i make a circle for me it's a bit more clear to see for us the inputs are gonna stay the same and for the ema we are going to use the 200 and the uh 50 because the parabolic sar only works in strong trends so we have to see with two emas if we are in a strong trend or not it's easier to see at least so that's going to be the 200 so we are in the downtrend for the 200 and i guess we are in a downtrend for 50 as well yeah right now we are so that's good and we have a perfect entry here as an example so okay um how to read the parabolic sar indicator you see all these white dots above and below the candles it's really basic if the dot is below a candle it tells you to go short that it's a downwards momentum and when it comes below underneath a candle then it's telling you to go for a long position and you can exit the trades when the next dot is above it or when you just set a stop loss towards the uh first dot underneath the candle and your target profit is going to be 1.5 or something just whatever you want i'm gonna test it with 1.5 risk reward so it's easier for back testing but when i would be live trading i would um yeah check when the next dot is check the momentum and get out of it when it changes direction so when do we take an entry that's why we take the ema in place when we are below the 50 and the 200 ema then we can only take short positions and when we are above it and the blue line the 50 ema is above the 200 ema we can only take long positions so right now we are in a strong downwards trend and then we can take positions but when the price is consolidating like here this is a no trade zone for us so keep that in mind with this indicator you really need a strong trend so when it's in a range like this please don't do not take an entry well you can take an entry but not with this indicator because it gives you false information so yeah let's get some examples so first let's find some downtrends well here's one we are in a big downtrend here and these dots are saying that it is bullish and here we have a first dot that is saying hey we are going back so when this candle closes you take a short position that would be here i don't know if this one hits though you would take a ratio with 1.5 this is still in a trade so we can't say yet if this is a gonna hit or not this is well on the 50 ema but there's quite a big difference betw between the 15 to 200 ema so i would take a short position here because we have a trend reversal here so we would enter on the second dot because the first dot only comes when the candle is closed then we can take an entry this one we do times 1.5 as well we would hit this one so that's great here we have another one we would short here 1.5 we didn't hit this one unfortunately this one went above it you could take the entry but i wouldn't here's another one we lost this one as well great example great example another one here think you can hear the ambulance of the police welcome to the big city 0.5 did hit this one and here we are in a bullish zone so we went down here from the seconds we would enter here for a long position 1.5 i think we didn't hit this one we hit oh we did hit this one okay same here on the second by the way that's 1.5 did not hit this one and here we go below it it's not a strong trend at all there might have entered here because we are using 1.5 ratio you can have more losses than wins and still make a lot of profit so don't think like um oh no it's a really bad bad uh indicator for now it looks like that but i think in the end when we get results together you will be impressed i hope at least we crossed here second one we go short 1.5 we hit this one we go up here short here again second one stop loss there 1.5 we hit this one as well here right now it's going great second one stop loss hit this one as well and here again we hit it as well now on the second sorry so four hits in a row which is great so i guess you um i hope you understand it now if you don't understand it please let me know in the comments so i can go uh into it more in the next video but the yeah and it gets quite basic you just have to check the emas are you below both or above both and then you only check for short or long entries um i'm gonna test this 100 times now so i'll come back with you with results [Music] [Music] [Music] [Music] [Music] so i had quite a good run i had the win rate of 63 percent with a take profit of 1.5 and a stop loss of 1. um to get to the this these percentages um you can just use leverage to always get the one point five and one percent but my risk reward was 1.5 and that's why i do this as example if he didn't use any leverage with a profit of 1.5 with 100 trades on by bit we would have made 783 dollars and that's quite a lot in my opinion if your starting balance is only 1k and the advantage of by bit is that when you use limit order you get money you don't have to pay any fee and that's why i always use buy bit for my scalping because you have a lot of orders and you don't want to ruin your money with fees as example if i use binance i only have made 400 and that's why i always use by bit um i have a code in my description there you can register with our code on bybit and get some advantages and you help us a lot with it um yeah if i used 10 leverage as example we would have made 40k so this is pretty insane and we had above 50 win rate and a take profit of 1.5 there's some decent results you can't always have that of course but yeah i really like this strategy it's quite easy and i think if you use it especially when the ema just crossed for going bearish or bullish that's the best position to start trading with uh with the strategy so i hope hope you learned something from it um don't forget to subscribe and to like the video and i hope to see you in the next one bye bye