Parabolic - the simplest strategy under the sun
The Parabolic trading indicator, is one of the simplest indicators that traders can trade with, and is an essential part of any MetaTrader platform.
Today's strategy based on the Parabolic is therefore no more complicated, as it is built on identical fundamentals that, thanks to many observations, have been found to work not only on Forex, but also on other CFDs with incredible accuracy.
Strategy entry rules
Entering long positions
-the price reaches the level at which the last upper dot of the Parabolic indicator is located
Entry into short positions
-the price reaches the level at which the last lower dot of the Parabolic indicator is located
Below is a trading session using today's simple Parabolic strategy (entry/exit when the Parabolic dot is reached), which clearly shows how effective some trading strategies can be without having to invent lengthy and complex trading procedures.
With today's Parabolic strategy it is possible to achieve success rates in excess of 50%. The biggest positive of this strategy, however, is that while the losses from each position remain relatively low, the gains can climb to ten times the average losses due to the changing evolution of the indicator over time.