LONG or SHORT
1 min TimeFrame
The PSAR bot is a scalper indicator that you can apply on your chart in your TradingView account. It is inspired from the Parabolic SAR indicator from Everget on TradingView.
Because it is a scalper, it is appropriate to take very small profits (0.15% by default). The indicator will generate BUY or SELL signals therefore you set it up to trade in the direction that you wish (LONG or SHORT).
The idea of the bot is to get in and out very quickly. This being said, you need to place Safety Orders which will get filled up when the trade goes against you. This can be done with 3Commas or Alertatron.
The algo will let you adjust the directional bias depending on 2 different indicators (Type 1 and Type 2). Then you will need to adjust the timeframe of the directional bias and finally the lookback. I recommend you use the default settings if you are new. If you want to play with the settings, you are welcome to play with the options.
Once the signals appear on the chart, you can filter them with the RSI filters. You start by selecting the timeframe of the RSI, then you adjust for RSI Longs and for RSI Shorts.
To me, anyone trading with algo should have at least 1 PSAR bot running on his account. This bot strategy has a 99% win rate. If you went through the courses, it means the 99% of wins are rather small, and the 1% of losses can be very big. This is why when trading with PSAR you shouldn't use more than 50% of your account balance with aggressive settings, or no more than 100% of your balance with conservative settings.
Take the daily chart. When the price trends up (above 200MA for example), don't be too aggressive longing. When it trades well below the 200MA, you can be more aggressive, since the probability to go down is less than the probability to go back up.
With this algo, I ran over 600 trades without a loss.
MAX COVERAGE 50%
This is why you should have a coverage of 50% with your settings. Yon won't earn as much I get it, but what is the point of earning 25+% in a month, and losing 100% the following month on a dump? Don't think about how much you could make. Think about how much you could lose.