I love to do credit spreads and this is a decent strategy that has had good results when back tested. However, it is a strategy based on a single indicator and, more importantly, just because it showed promise during a certain time in the market does not guarantee that it will do the same in the future. Also, take a look at the largest win/loss and you can see that the SAR definitely has it’s drawbacks when used alone. At any point, it’s an interesting study on the very popular strategy of credit spreads. You can get the whole “Futures & Options Trader monthly magazine for free here.
Parabolic SAR with credit spreads
- Post author:Darren Miller, Ph.D.
- Post published:Saturday, December 19, 2009
- Post category:Commentary