This strategy end up a position once prices have crossed the trailing stop determined by the Parabolic SAR (Stop And Reversal).
Keep in mind that some source say "the SAR value is today's, not tomorrow's stop level" and other don't ! :)
Using the Parabolic SAR can be very helpful as long as the security is not prone to short term price trend reversals. If price is erratic, reversing quickly in the short trend, the Parabolic SAR will likely produce poor results.
=head2 Links
http://www.stockcharts.com/education/Resources/Glossary/parabolicSAR.html http://www.equis.com/free/taaz/parabolicsar.html http://www.linnsoft.com/tour/techind/sar.htm