• From: London, UK
  • Registered: 2011-12-20
  • Posts: 2

Topic: Help with PSAR Setting in Forex Strategy Trader

I am in the process of making a trading setup with FST that uses the PSAR and ADX indicators to find trading opportunities. However, I've encountered some problems and need some help.

Firstly, there seems to be a discrepancy between the PSAR indicators for each of the programs. In MT4 the PSAR (0.02, 0.2) places markers in different places. If you look at the charts below, I have highlighted one example of where they are different:

http://www.anthonyweston.com/fst/charts.jpg

My strategy uses the PSAR to enter a bullish trade when the marker is below the price AND the ADX(50) is also bullish. As you can see, this trade wasn't a winner, but in FST it is a much larger loss than in MT4.

Another problem I have encountered is that I want to exit a trade where the PSAR changes from below the price to above the price, but the FST exit rule (Exit the market at PSAR) doesn't seem to do this. Instead it does something different, but I cannot work out exactly what it is doing?

The image below demonstrates how a good trade should play out:

http://www.anthonyweston.com/fst/trade.jpg

If anyone can help me get this working, that would be brilliant. I just cannot figure out why there is a difference between where the markers are and why it doesn't exit when the PSAR changes direction.

  • krog
  • Licensed Member
  • Offline
  • Registered: 2010-02-26
  • Posts: 407

Re: Help with PSAR Setting in Forex Strategy Trader

Hi, thanks for the detailed description and screenshots, I think I can see what's happening.

Here's my guess: I think MT4 PSAR changes the marker position sometime during the bar, after the bar open and before the bar closing, when it crosses the previous PSAR value. FST PSAR draws the marker at the open of the bar, and does not change it. If this is the case, then MT4 could change the "marker above/below" during the bar, but FST would not change it until the next bar.

Reasons to suspect:
6 Jan 16:00 -- the bullish bar opens at around 102.15, drops past the previous PSAR at 101.25, so the marker reverses and goes above the bar. However, at 16:00 - 102.15, it is impossible to know if the bar will in fact drop to the previous PSAR value; it could have been a short bar, and PSAR not reversed.
Good Trade Ex -- may show the same issue. If MT4 says the trade entered at the open of the bar at 97.65, then it has looked into the future to know the bar would cross the PSAR upwards.

How to Verify: Run MT 4 and watch when a bar crosses the PSAR.
To support my guess, you will see: MT4 draws a marker close to the previous PSAR; then the bar crosses the current PSAR; then MT4 erases the current PSAR and draws it to the other side.

Or, if this does not happen, then it would not support my guess, would have to think of a different explanation.

  • From: London, UK
  • Registered: 2011-12-20
  • Posts: 2

Re: Help with PSAR Setting in Forex Strategy Trader

Thanks for the reply.

Yes I can see what you mean. That does appear to be happening. This might put a big spanner in the works for this particular trading setup, because by the time the final decision has been made, the price can be way off.