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BACKTESTING · PARABOLIC SAR STOP

Parabolic SAR Stop Backtest in Crypto: Fees, Slippage and Break-Even Costs

Parabolic SAR is usually used as a trailing stop that accelerates as a trend extends. Its acceleration settings decide how much of each trend you keep.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

Parabolic SAR trails price with a step that accelerates (acceleration factor starting at 0.02, increasing by 0.02 per new extreme, capped at 0.20 by default). As a stop-and-reverse system it is always in the market and trades often in ranges; as an exit-only stop it can tighten quickly in strong trends. Test the acceleration step and cap, compute break-even cost, and compare SAR exits with fixed ATR trails on the same entries.

Break-even cost

ItemValue (illustrative)
Trades140
Gross avg per trade+0.55%
Fees (2 × 0.05%)−0.10%
Slippage (2 × 0.04%)−0.08%
Net avg per trade+0.37%
Break-even round-trip cost0.55%
Parabolic Sar Stop: edge vs cost per trade (%)Parabolic Sar Stop: edge vs cost per trade (%): Gross edge 0.55 %; Fees 0.10 %; Fees + slippage 0.18 %.PARABOLIC SAR STOP: EDGE VS COST PER TRADE (%)Gross edge0.55 %Fees0.10 %Fees + slippage0.18 %
Edge per trade versus cost per trade. Original ChartsPod editorial graphic.

Exit comparison

ExitAvg hold (bars)Net avg (illustrative)
SAR 0.02/0.2014+0.42%
SAR 0.01/0.1023+0.51%
ATR ×3 trail21+0.48%
Illustrative net avg by exit (%)Illustrative net avg by exit (%): SAR default +0.42 %; SAR slower +0.51 %; ATR trail +0.48 %.ILLUSTRATIVE NET AVG BY EXIT (%)SAR default+0.42 %SAR slower+0.51 %ATR trail+0.48 %
Exit choice changes hold time and result. Original ChartsPod editorial graphic.

Conclusion

Related: Trailing Stops: A Worked Crypto Example With Fees Included, Hull Moving-Average Trend Backtest in Crypto: Fees, Slippage and Break-Even Costs.

Backtest the parabolic sar stop rule with costs in ChartsPod.

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Test the acceleration step and cap, compute break-even cost, and compare SAR exits with fixed ATR trails on the same entries.

Review Parabolic SAR Stop Backtest in Crypto with bar replay before using it live.

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Questions readers ask

What does Parabolic SAR do?

Trails price with an accelerating step.

Why does it trade so much?

As stop-and-reverse it is always in the market.

What should I test?

Acceleration step and cap.

Sources and methodology

Backtest cost logic follows TradingView's Pine Script strategy documentation; indicator definitions are standard. All performance numbers are illustrative examples of the method, not results of real tests.

  1. TradingView Pine Script: Strategies — simulated fills and assumptions.
  2. TradingView Pine Script: Repainting — live vs historical calculation.
  3. ChartsPod documentation — guides for order flow, derivatives, alerts, backtests, journal and workspaces.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.