FINAXIONResearch
Finaxion Research · Parabolic SAR: follow the dots · forex pairs · Recomputed 2026-09-10

Does Parabolic SAR: follow the dots work on USD/CHF?

Parabolic SAR: follow the dots beats buy-and-hold on USD/CHF by +1.2 points a year over 23 years.

Total return
-22.3%
Buy and hold
-41.4%
CAGR
-1.1%
Sharpe
-0.63
Max drawdown
-26.9%
Trades
554
Out of sample
overfit
Years
23
0.6×0.8×1×200420062008201020122014201620182020202220242026
StrategyUSD/CHF

Findings

  1. Parabolic SAR: follow the dots beats buy-and-hold on USD/CHF by +1.2 points a year over 23 years.
  2. Against the S&P 500 over the same window: -12.2 points a year.
  3. Total return -22.3% versus -41.4% for buy-and-hold, with 554 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -26.9%.
  6. It beats in both halves of the history (split at 2015).
  7. It ranks #190 of 235 markets for this strategy by annual excess over the S&P 500.

Findings derived from the full panel. Each carries its number and its denominator; the computations are reproducible with artifact 566419a0cec8.

Exactly what was tested

Long while the close is above the SAR (0.02, 0.02, 0.2); exit when the close drops below the SAR.

How to read it

The verdict compares the strategy with buying and holding USD/CHF over the same window, with round-trip costs per asset class. “Out of sample” is walk-forward: the rule is fit on one stretch and judged on the next. A result that beats in the full sample but not out of it is overfit. Full methodology in the protocol. How we test.

Open this backtest with its trades   Trades (CSV)

Every strategy on USD/CHF → · Full page for Parabolic SAR: follow the dots →

How to cite

Finaxion Research (2026). Does Parabolic SAR: follow the dots work on USD/CHF?. Daily backtest 1962-01-01–2026-08-31, artifact 566419a0cec8. https://finaxion.app/en/research/parabolic-sar/usdchf

Not a recommendation. Past performance does not guarantee future results.