Parabolic SAR Trend Trading in MQL5

Introduction

Imagine navigating the forex markets with the precision of a master tracker, using a dynamic indicator to follow trends and execute trades with clarity. The Parabolic SAR EA is your advanced trend-tracking tool, designed to automate trading by leveraging the Parabolic SAR indicator ("handleSAR") with a step of 0.02 and maximum of 0.2 ("iSAR()") to identify trend reversals. When the SAR dot flips below the current low ("SAR_Data[0] < low0"), it triggers a 0.01-lot buy trade with the SAR as the stop loss and a 100-pip take profit ("Ask+100*_Point") via "obj_Trade.Buy()". A SAR dot above the high ("SAR_Data[0] > high0") signals a sell, using "obj_Trade.Sell()". Trades are limited to one per bar ("signalTime") to prevent overtrading, with no magic number for position tracking. This strategy suits traders targeting trend shifts in volatile markets, requiring careful risk management due to its reliance on dynamic stop losses.

This article is crafted with a professional, engaging, and seamless narrative, flowing like a well-calibrated trend-tracking system, designed to inform and captivate readers. Tailored for both novice and experienced traders, we’ll dissect each code component with clear, precise explanations, as if guiding an apprentice navigator through a trend-following project. With vivid examples—like trading EURUSD—and a polished tone, we’ll explore how the EA initializes, detects signals, executes trades, and ensures cleanup. Using a precision trend tracking metaphor, this guide will illuminate the code’s technical rigor, empowering you to capture trends with confidence. Let’s activate the system and begin this trading expedition!

Strategy Blueprint

Let’s outline the EA’s trend-tracking framework, like drafting specifications for a navigation system:

• Indicator Setup: Initializes the Parabolic SAR with a step of 0.02 and maximum of 0.2 ("iSAR()", "handleSAR") to track trend reversals.

• Signal Detection: Triggers a buy when the SAR is below the current low ("SAR_Data[0] < low0") and was above the previous high ("SAR_Data[1] > high1"), or a sell when SAR is above the current high and was below the previous low, using "iLow()", "iHigh()".

• Trade Execution: Opens 0.01-lot trades ("obj_Trade.Buy()", "obj_Trade.Sell()") with SAR as stop loss ("SAR_Data[0]") and 100-pip take profit.

• Trade Limiting: Ensures one trade per bar ("signalTime", "iTime()") to avoid overtrading.

• Execution: Processes signals on each tick ("OnTick()") with data from "CopyBuffer()".

• Enhancements: Adding a magic number or additional trend filters could improve control and accuracy. This framework automates trend trading with precision, balancing signal clarity with disciplined exits.

Code Implementation

Let’s step into the trend-tracking control room and dissect the MQL5 code that powers this Parabolic SAR EA. We’ll guide you through each phase like expert navigators, ensuring the narrative flows seamlessly with professional clarity and engaging precision that captivates readers. We’ll cover initialization, signal detection, trade execution, and cleanup, with detailed explanations and examples—like trading on EURUSD—to make it accessible for beginners. Each phase will build on the last, crafting a cohesive technical narrative that transforms code into a compelling trend-tracking project. Let’s power up the system and begin!

Phase 1: Constructing the Framework—Initialization

We start by building the trading system, initializing the Parabolic SAR indicator for trend detection.

//+------------------------------------------------------------------+
//|                                                PARABOLIC SAR.mq5 |
//|                           Copyright 2025, Allan Munene Mutiiria. |
//|                                   https://t.me/Forex_Algo_Trader |
//+------------------------------------------------------------------+
#property copyright "Copyright 2025, Allan Munene Mutiiria."
#property link      "https://t.me/Forex_Algo_Trader"
#property version   "1.00"

#include <Trade/Trade.mqh>
CTrade obj_Trade;

int handleSAR;
double SAR_Data[];

int OnInit(){
   handleSAR = iSAR(_Symbol,_Period,0.02,0.2);
   if (handleSAR == INVALID_HANDLE){
      Print("UNABLE TO LOAD UP THE INDICATOR TO THE CHART. REVERTING NOW PAL");
      return (INIT_FAILED);
   }
   ArraySetAsSeries(SAR_Data,true);
   return(INIT_SUCCEEDED);
}

The system begins with the #property header, establishing copyright and contact details, like calibrating a trend-tracking system’s core. The "OnInit()" function initializes the setup, including "Trade/Trade.mqh" for trading via "obj_Trade". It creates a Parabolic SAR handle ("handleSAR", "iSAR()") with a step of 0.02 and maximum of 0.2, storing data in "SAR_Data[]" as a time series ("ArraySetAsSeries()"). If the handle fails ("INVALID_HANDLE"), it logs with "Print()" and returns "INIT_FAILED". Returning INIT_SUCCEEDED signals, “System is ready, let’s track trends!” This primes the EA for SAR-based trading, like a navigation tool poised for action.

Phase 2: Mapping Trend Signals—Detecting SAR Reversals

With the system active, we load SAR data and detect trend reversals, like scanning for directional shifts on a market map.

void OnTick(){
   if (CopyBuffer(handleSAR,0,0,3,SAR_Data) < 3){
      Print("NO ENOUGH DATA FROM THE SAR INDICATOR FOR FURTHER ANALYSIS. REVERTING");
      return;
   }
   double low0 = iLow(_Symbol,_Period,0);
   double low1 = iLow(_Symbol,_Period,1);
   double high0 = iHigh(_Symbol,_Period,0);
   double high1 = iHigh(_Symbol,_Period,1);
   double Ask = NormalizeDouble(SymbolInfoDouble(_Symbol,SYMBOL_ASK),_Digits);
   double Bid = NormalizeDouble(SymbolInfoDouble(_Symbol,SYMBOL_BID),_Digits);

In the signal mapping hub, "OnTick()" runs every tick, loading 3 bars of SAR data into "SAR_Data[]" with "CopyBuffer()", exiting with "Print()" if insufficient (< 3). It fetches current and previous lows ("low0", "low1", "iLow()") and highs ("high0", "high1", "iHigh()") and normalizes ask and bid prices ("Ask", "Bid", "SymbolInfoDouble()", "NormalizeDouble()"). This ensures reliable trend signals, like a clear radar scan, before processing reversals. For example, on EURUSD M15, it loads SAR values (e.g., 1.1995, 1.1997) and price data (low=1.2000, high=1.2010), preparing for signal detection.

Phase 3: Navigating Trades—Executing SAR-Based Trades

With signals detected, we execute trades based on SAR reversals, like launching trades on confirmed trend shifts.

void OnTick(){
   // ... (data loading)
   static datetime signalTime = 0;
   datetime currTime0 = iTime(_Symbol,_Period,0);
   if (SAR_Data[0] < low0 && SAR_Data[1] > high1 && signalTime != currTime0){
      Print("BUY SIGNAL @ ",TimeCurrent());
      signalTime = currTime0;
      obj_Trade.Buy(0.01,_Symbol,Ask,SAR_Data[0],Ask+100*_Point);
   }
   else if (SAR_Data[0] > high0 && SAR_Data[1] < low1 && signalTime != currTime0){
      Print("SELL SIGNAL @ ",TimeCurrent());
      signalTime = currTime0;
      obj_Trade.Sell(0.01,_Symbol,Bid,SAR_Data[0],Bid-100*_Point);
   }
}

In the trade navigation hub, "OnTick()" checks for SAR reversals. A buy signal triggers when the current SAR is below the low ("SAR_Data[0] < low0") and the previous SAR was above the high ("SAR_Data[1] > high1") with a new bar ("signalTime != currTime0", "iTime()"), logging with "Print()" and opening a 0.01-lot buy ("obj_Trade.Buy()") with SAR as stop loss ("SAR_Data[0]") and 100-pip take profit ("Ask+100*_Point"). A sell signal mirrors this ("SAR_Data[0] > high0", "SAR_Data[1] < low1"), using "obj_Trade.Sell()". For example, on EURUSD M15, a SAR flip from 1.2015 (above high) to 1.1995 (below low) triggers a buy at 1.2007, stop loss at 1.1995, take profit at 1.2107, like locking onto a bullish trend shift.

Phase 4: Shutting Down the System—Cleaning Up Resources

As our expedition concludes, we shut down the system, ensuring resources are cleared for the next journey.

void OnDeinit(const int reason){
   IndicatorRelease(handleSAR);
   ArrayFree(SAR_Data);
}

In the shutdown control room, "OnDeinit()" releases the SAR handle ("handleSAR") with "IndicatorRelease()" and frees the data array ("SAR_Data") with "ArrayFree()", like dismantling a trend-tracking system’s components. This ensures a clean workspace, ready for the next task.

Why This EA is a Trend-Tracking Triumph

The Parabolic SAR EA is a trend-following triumph, automating trades with precision, like a master-crafted navigation system. Its dynamic SAR signals ("SAR_Data", "iSAR()") and disciplined exits ("obj_Trade.Buy()", "obj_Trade.Sell()") offer clarity, with potential for magic numbers or trend filters to enhance control. Picture a buy on EURUSD at 1.2007 with a 1.1995 stop loss—strategic brilliance! Beginners will value the clear signals, while experts can refine its framework, making it essential for trend traders.

Putting It All Together

To deploy this EA:

1. Open MetaEditor in MetaTrader 5, like entering your trend-tracking control room.

2. Copy the code, compile with F5, and verify no errors—no navigator wants a faulty system!

3. Attach the EA to your chart, enable AutoTrading, and watch it execute SAR-based trades.

4. Monitor logs (e.g., “BUY SIGNAL @ 2025.06.25 08:00:00”) for trade tracking, like navigation diagnostics.

5. Test on a demo account first—real capital deserves a trial run!

Conclusion

We’ve engineered a Parabolic SAR Trader that automates trend trading with precision, like a master-crafted navigation system. This MQL5 code is your strategic tool, brought to life with a seamless, professional narrative packed with clear explanations and vivid examples to fuel your trading ambition. Whether you’re a novice navigator or a seasoned market strategist, this EA empowers you to capture trends with confidence. Ready to trade? Watch our video guide on the website for a step-by-step creation process. Now, track your trading path with precision! 🔍

Disclaimer: Trading is like navigating complex markets—challenging and risky. Losses can exceed deposits. Test strategies on a demo account before going live.