The SAR Block Configuration

On BullTrading, you have several options to configure each block uniquely. In this block, you can set the time unit, acceleration parameters, and more.

Time Unit

Since BullTrading allows for multi-timeframe strategies, you can select the time period for calculating this indicator. There are two options:

• Default: If set to Default, the time unit will vary based on the timeframe used in the backtest.

• 15m, 30m, 1d, etc.: Choosing a specific time unit means this setting will apply regardless of the time unit used for backtesting your strategy.

TIPS: If you’re a beginner, it’s recommended to leave the time unit on Default.

Acceleration Step

The acceleration step determines the sensitivity of the SAR to price movements. The larger the value, the more sensitive the SAR will be. Thus, increasing the value makes the SAR adjust more quickly to the current trend, but it also increases the risk of false trend reversals. The default value for this parameter is 0.02.

Max Accelaration Factor

This is the maximum value that the acceleration can reach as the trend continues. This parameter limits the impact of acceleration on the SAR value to prevent it from becoming too sensitive to small price variations. A higher value makes the SAR more reactive at the end of a trend, but if it’s too high, it can increase the risk of false reversals. The default value is 0.2.

Initial Factor

This is the initial value of the indicator when a new trend begins. Typically, the same value as the acceleration step is used.

Signal Type

This parameter has two options: CrossOver and Position. Here’s the difference:

• CrossOver: If you select CrossOver as the signal type, this block will validate only when the price crosses above or below the SAR points.

• Position: With this option, the block is validated as long as you are in the selected Trigger Type (Bearish or Bullish).

TIPS: The CrossOver parameter is more restrictive, making it useful when combining only one or two indicators. However, using too many blocks with CrossOver will significantly reduce the number of trades in your strategy, as it requires, for example, a crossover between the two MAs + a crossover at the RSI 70 threshold + a crossover in the Vortex indicator.

So, if you’re a beginner, avoid setting more than one or two blocks to CrossOver when combining multiple indicator blocks.

Trigger Type

This parameter has two options: Bullish or Bearish. Here’s the difference:

• Bullish: If the trigger type is set to Bullish, the block is validated if the price is above the SAR points.

• Bearish: If the trigger type is set to Bearish, the block is validated if the price is below the SAR points.