Trailing position using Parabolic Sar

FX:EURUSD   Euro / U.S. Dollar
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Trailing position using parabolic sar .

I'm the fan of very tight stop losses, the negative side of it is that they are triggered a lot. But, in a long run it's easy to keep a positive account statistics and psychology wise it' very easy to overcome this occasions, as losses are never big.

I'm a day trader, and stop losses are so important in a short term trading - it's unbelievable.

I will review several approaches with the use of different tools in my future posts, but will start probably with the easiest one.

Parabolic Sar , a very easy to use indicator created by J. Welles Wilder, Jr. and instead of using it for entries, in the modern world it is used to trail open positions.

In a short words, with every new dot a stop is moved to this dot with a candle's close.

The good thing about using stop losses based on this indicator is that the stop ls wide in the beginning and it's tighten up with every new candle, so it keep's your position in profit in case of the market uturn.

Some traders are using one dot before the last one, When I'm using this approach I'm using the last one.

When my stop loss is triggered I'm not worrying about r/r

But for those who are so focused in a risk reward I will tell just one thing - the less negative stop losses you will et, the easier it will be to keep the account positive.

We always have to get into positions as into potentially loosing trades, and reduce our risks.

No matter how many times you will miss a large move, the only thing you. An control for sure - is your stop loss, always remember it.

Not using stop loss will lead your account to 0 in a marginal trade, no matter what.
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