Crude Oil Scalping With Parabolic SAR Indicator

Crude Oil Trading Strategies

This is almost a holy grail trading system. I have tested this strategy for some time now and I found this strategy can give you at least 80% accuracy. Let me introduce my Crude Oil scalping system with Parabolic SAR indicator for at least 20 points profits per day.

What is a scalping trading system?
A scalping trading system involves quickly entering trades and quich booking of profits. Its mainly an intraday trading system where you keep small target and small stop loss.

Who is a good broker for Crude oil scalping?
You need to choose a suitable broker. As this strategy involves small target and small stop loss and you need to trade multiple times a day for quick gains the brokerage should be very competitive. I shall suggest you to open a trading account with Zerodha as their brokerage is most competitive. Check this tool: Zerodha Brokerage Calculator.

The trading setup:
Open a 5 minutes chart of MCX crude oil and attach Parabolic SAR indicator OR PSAR (0.02, 0.2).
Parabolic SAR Indicator
This will create crude oil ctart with PSAR. This is our basic setup for Crude Oil scalping.

Buy condition:
1) Parabolic SAR indicator should be below price candle.
2) Wait for a candle whose open and low are same. This will be our entry candle.
3) Note the high of that entry candle.
4) Put a limit buy order in the terminal above the high of the entry candle.
5) Once the order is filled keep a stop loss below low of the entry candle.
6) Keep a target same as stop loss points OR 5 points whichever is greater, i.e if the stop loss is 3 points keep a target of 5 points but if the stop loss is 8 points then keep a target of 8 points.
7) Cancel the order if entry candle low get broken before triggering the buy.

Short sell condition:
1) Parabolic SAR indicator should be above price candle.
2) Wait for a candle whose open and high are same. This will be our entry candle.
3) Note the low of that entry candle.
4) Put a limit short sell order in the terminal below the low of the entry candle.
5) Once the order is filled keep a stop loss above high of the entry candle.
6) Keep a target same as stop loss points OR 5 points whichever is greater.
7) Cancel the order if entry candle high get broken before triggering the short sell.
Crude Oil Scalping
This strategy works great for Crude Oil scalping and you can get 4-5 trades a day which can fetch you 20-30 points every day. Your observations will be welcome in the comment box below.

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Author Bio

Indrajit Mukherjee

Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.

11 thoughts on “Crude Oil Scalping With Parabolic SAR Indicator”

  1. Sir,
    My query is regarding the point no.2 of entry conditions. Is it necessary that the condition 2 should be the same bar while it crosses the PSAR? or suppose the current bar has the different OHLC and it crosses the PSAR and after couple of bars we get the open & Low same, so should we enter when the high of that bar is breached?

    thanks

    1. Kaushal, both criteria at same bar does not needed. First criteria the parabolic SAR should be below price bar for a buy and then wait for a open low same bar which will be the trigger bar. Look for the opposite for a sell order.

          1. I know the basic coding, and have tried doing it. Problem area is i am not abe to code “the entry bar where the high of the OPEN=LOW candle breached”. There can be n number of bars passed untill it breaks the high point of the open=low candle.

            what my coding does is, it sees the previous candle for the open=low condition.

            **the example abv was for the buy condition.

            thank you.

  2. Sorry to bother you again sir
    The code which u said, we only get the value of the High, but it dosent say whether the preceding candle have broke the high of the “BuyCandle = O=L and C > SAR( 0.02, 0.2 )”

    what we require is Barsince the both conditions have met (and till it is true), it has to find a candle where the high is higher than buycandle condition.

    1. Kaushal, I am unable to understand what exactly are you meaning. But if you get the clear buy and sell levels, you can easily create a trading system. If you wish you can use exrem and barsince functions.

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