Trend-following with accelerating trailing stop mechanism
| Strategy Type | Parabolic SAR Trend Trading |
| Market Outlook | Trend-following with accelerating trailing stop mechanism |
| Risk Profile | Moderate to High - sensitive indicator with frequent signals |
| Reward Profile | Good returns from riding trends with tightening stops |
| Time Horizon | Intraday to swing (hours to days) |
| Capital Requirement | Moderate (₹1,50,000 - ₹4,00,000) |
| Margin Type | MIS for intraday; NRML for swing trades |
| Best Used When | Strong trending markets; SAR dots flip from above to below price (or vice versa) |
| NIFTY | 25 units per lot (₹50 per point) |
| BANKNIFTY | 15 units per lot (₹15 per point) |
| FINNIFTY | 25 units per lot (₹25 per point) |
| Stock Futures | Varies by stock |
| Standard | AF Start 0.02, AF Increment 0.02, AF Maximum 0.20 |
| Conservative | AF Start 0.01, AF Max 0.10 (slower, fewer whipsaws) |
| Aggressive | AF Start 0.03, AF Max 0.30 (faster, more signals) |
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