Trend Following5m CandlesComplexity: Beginner
Parabolic SAR with ADX Trend Confirmation
Eliminates choppy false flips from Parabolic SAR by enforcing a minimum ADX threshold (> 25) before confirming trade execution.
Public & Generic Educational Strategy Notice: This strategy blueprint represents a publicly known mathematical formulation and standard technical analysis concept. Algo Software Innovations does NOT claim proprietary copyright, invention, or exclusive ownership over these formulas. You can adapt, customize, and deploy this logic to your private cloud VPS.
Mathematical Logic & Formula Formulation
Long = (PSAR flips below Price) and (ADX_14 > 25) and (Price > 50 SMA)
Deterministic Entry Rules
Long Entry (BUY)
- ✓Parabolic SAR dot flips from Above price to Below price.
- ✓ADX(14) is strictly GREATER than 25.0.
- ✓Close is ABOVE 50 SMA.
Short Entry (SELL)
- ✓Parabolic SAR dot flips from Below price to Above price.
- ✓ADX(14) is strictly GREATER than 25.0.
- ✓Close is BELOW 50 SMA.
Exit Criteria & Stop Loss Protection
Initial Stop LossParabolic SAR dot level at time of entry.
Target Profit1.5% - 2.5% intraday target.
Risk/Reward Expectancy1 : 2.0
Strategy Configuration Specs
Market Segment:Nifty Options Intraday & Cash Equities
Candle Timeframe:5m Candles
Risk-to-Reward Ratio:1 : 2.0
Throttling Compliance:≤ 10 OPS Enforced
Required TA-Lib Indicators:
Parabolic SAR (0.02, 0.20)ADX (14)SMA (50)
Risk Management Controls
- •Orders throttled under SEBI 10 OPS limit.
Target Trader Profile:Great for simple, rules-based intraday momentum execution.