A trailing stop-loss is an advanced order type used in financial trading to protect profits and limit potential losses, a trailing stop-loss allows traders to limit their losses and safeguard their profits.
The Parabolic SAR (Stop and Reverse) is a technical analysis indicator developed by J. Welles Wilder Jr., an American mechanical engineer and technical analyst. Welles Wilder is well-known for his contributions to technical analysis indicators, he introduced the Parabolic SAR in his book "New Concepts in Technical Trading Systems" published in 1978.
The Parabolic SAR indicator is shown on the chart by a series of dots that appear either above or below the price chart. The PSAR trailing stop is a technical analysis tool used in trading to set trailing stop loss orders. It is designed to dynamically adjust the stop loss level based on the dots of the indicator. This allows traders to ride the trend and capture profits while protecting against potential reversals.
How Does the PSAR Trailing Stop Work?
In an uptrend: The dots of the Parabolic SAR start below the price, and as long as the price remains above the dots, the stop loss level trails below the price and if the price surpasses the dots, the stop loss level flips and moves above the price.
In a downtrend: The dots of the Parabolic SAR start above the price, and as long as the price remains below the dots, the stop loss level trails above the price and if the price falls below the dots, the stop loss level flips and moves below the price.
- The distance between the dots and the price determines the level of the trailing stop, and the closer the dots are to the price, the tighter the trailing stop, and vice versa.
It's important to note that like any technical indicator, the Parabolic SAR trailing stop is not foolproof and may not always provide accurate signals, traders should use it in combination with other analysis techniques and risk management strategies to make well-informed trading decisions.
You can add additional risk management and other trade rules yourself or by contacting our development team.
How to Attach Indicator to Chart
You do not need to attach the Parabolic SAR indicator to your chart when you run the cBot, but it is a good idea to visually see the indicator to check the trailing stop loss.
How To View The Source Code
To view the source code for this cBot, you will first need to make sure you have downloaded and installed cTrader Desktop, you can also scroll to the bottom of this page for instructions on how to install the cBot. Once installed you will have the cTrader application open, next you need to navigate to the Automate application and click on the name of the cBot, the source should show in the right-hand window.
If you need more help watch a video tutorial on how to use cTrader Automate.
Learn Algorithmic Trading
In this instructional guide, we aim to assist you in acquiring the necessary skills to engage in market trading through automated trading strategies (cBots) using the cTrader Desktop trading platform. By the conclusion of this tutorial, you will gain the confidence to employ a cTrader cBot alongside the Algo application of cTrader, enabling you to automatically execute and handle your market orders. This course is designed to familiarize novice traders with the fundamental principles of algorithmic trading utilizing the cTrader platform.
Learn Microsoft C# for Algo Trading
If you are new to coding your cTrader cBot for automated trading the following Microsoft C# course will help you modify the starter kit cBot in this download to add new features for your own personal trading strategy.
Algorithmic Trading Facts
A significant number of traders venture into algorithmic trading with the misconception that they have discovered a foolproof strategy that guarantees effortless wealth. However, this notion is far from reality. It is crucial to read this article, as it can save you valuable time and money.
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
If you have any questions, please first search our coding help forum for the answer, if you cannot find it, post a new question.
Need Coding Help?
We can help you modify this cBot for your own personal trading strategy, contact our team for a quote.
Need a Broker
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