1300+ times MACD Trading Strategy Backtests Statistics, Surprising!
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Today I will share the statistics of 1300+ times MACD EMA200 backtesting.
This trading strategy is very simple, but The result is quite surprising.
We only trend with trends, and using EMA200 trend line as a filter,
when the price is above EMA200, it is an upward trend, we only trade long,
when the price is below EMA200, it is a downtrend, we only trade short.
then we use the MACD as a trigger to open a position.
When the MACD line crosses the signal line from below, we long.
When the MACD line crosses the signal line from above, we short.
This trading strategy can be used on different time frames to trade stocks or forex,
but it seems to do better on a 30 minutes time frame.
Besides, You should have an exiting plan to protect your money.
Any transaction needs to set a profit-loss ratio.
You can find tools in tradingview.com for profit-loss ratio.
Use a long position as an example, stop loss is placed slightly below the EMA 200 trend line,
or an obvious support line such as a previous swing low.
Use this stop loss in pips as the base to set up the take profit ratio.
Say if your P&L ratio is 1.5 to 1, the stop loss point is 100pips,
then your take profit point is 150pips.
Although everyone is very familiar with the MACD,
But sometimes it might be used in the wrong way.
Before showing you the results, let’s take a look at the principle of MACD,
so that you can use it correctly.
On this chart, you can see the default parameters of MACD are 12, 26 and 9.
This indicator use EMA12 and EMA16 to calculate MACD.
The blue MACD line below is the result of subtracting EMA16 from EMA12.
The orange signal line is the result of a nine-day exponential moving average of MACD
The histogram is the difference between MACD and signal,
which is subtracting the signal line from the MACD line.
It is an indicator of momentum.
If this histogram above the zero axis, it means the price on an upward trend is strengthening.
If it is below the zero axis, it means the downward trend is strengthening.
Generally speaking, when MACD crosses the signal line from below, we buy.
when MACD crosses the signal line from above, we sell.
But if you just trade like this and ignore the trend, you will lose money.
The statistical results later also prove this point.
On Youtube, I saw doing the MACD test first on the Trading Rush channel.
Some other YouTubers do backtests afterward,
I’ll put links to these videos in the video description.
If you are interested, you can go and see for yourself.
Now, let’s look at the statistics. Various data are listed on this table.
These data are collected from all the MACD 100 times backtests on Youtube I can find.
We can see that they use different trading tools, the timelines are different too.
But 15 minutes and 30 minutes time frame are most common.
Most of them have backtested at least 100 times.
Besides, most of them have fixed profit-loss ratio.
This table also lists the number of winners, number of losses, win rate,
profit margin and if they are trading on-trend.
What we care most about in this table is the win rate.
As you can see, the overall winning rate is quite high.
Overall a 52.4% win rate and the profit margin is 23.5%.
The result of trading with this strategy is pretty good.
Note, the win rate of the last video in this table is relatively low.
The profit margin is also very low. There are two main reasons.
First of all, he is not a trending trader,
It’s very common when one uses the MACD with no trending filter.
At the same time, he has no fixed profit-loss ratio.
He uses the MACD crossover for entry and exit signals.
It means he does not control the risk at all.
So his result is the worst among others.
Although the win rate and profit are good,
you should notice this strategy also has blind spots.
Here is an example
You can see the stock price after rose sharply and fell sharply in a short time.
From the overall trend, it still in an upward trend.
Which is the price is greater than EMA200 line.
If you check the MACD, there is a buy signal.
But you will find that the price is at the highest point when the signal is triggered.
So this trading strategy is not suitable when prices fluctuate sharply in a short period.
MACD Crossover Zero Line, 1300+ times MACD Trading Strategy Backtests Statistics, Surprising!.
The Real Trick To Day Trading Forex Currency
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1300+ times MACD Trading Strategy Backtests Statistics, Surprising!, Find popular reviews relevant with MACD Crossover Zero Line.
Trade Without Indicators – Learn Price Action
The MACD (moving average convergence/ divergence) sign is really, incredibly popular. Manning’s philosophy relating to making a lot of play modifications is that he does not desire to waste a play.
The forex trading method which I am about to expose to you now is a type of scalping technique which you can use to produce profitable buy or sell signals to position your trades. This is the way you must set it up. You should utilize the currency pair GBP/USD, the length of time you should utilize is the 5 minute chart and the indicators you can use for it are MACD 5, 8, 9, SAR on MACD using the figures 0.1, 0.11 and SAR on the chart with the figures 0.1, 0.11.
The Macd Trading/OsMA is easy to study as it is two lines that are crossing each other. If the MACD/OsMA lines are crossing each other it is most likely that there is a change in the pattern. Simply put the rates in the currency set is altering.
So, can one currency pair make adequate cash for you to make a living Macd Trading signals currencies? Negative Reversal signals (a character tool of RSI) have actually produced over 25,000 pips in 2010. That need to do it and if that isn’t enough, Positive Reversals produced 15,000 pips.
Currently, we are trading around the 1.7345 level. It appears the down relocation is fully in place, and should continue towards the previous lows at 1.7280.
Once you have a system in location, you need to make certain you just trade through a ECN broker, this will make your Macd Trading Crossover far more easier. Trust me on this most Forex brokers that have a dealing desk simply love brand-new traders, due to the fact that they are uninformed of their little techniques. Another words when you win they lose, they trade versus their customers. So trade through a ECN broker just and this will make your life as a trader a lot more simple.
If you bought the above XYZ stock at $20 and took earnings at $30, you would have a nice 50% gain, but would have missed out on the 400% overall gain of the entire trend.
Because it’s the easy system that works in this ever-changing brutal currency market, I have actually constantly kept my trading systems basic. Surprised by that? Did you believe that a successful trading system has to be difficult and sophisticated to use? Doing well from the forex market depends on how effectively the trader himself utilizes the trading system and not how excellent the trading system is.
The above technique is very basic but all the very best systems and techniques are. If you swing trade extremes, you will get a couple of great signals a week and this will be enough, to make you big gains in around thirty minutes a day. If you desire a terrific method to make huge revenues, there is no better method than currency swing trading.
Let’s say both lines have just turned green so you’re considering a long trade. The technical analysis needs to likewise be identified by the Forex trader. Remember, you can do effectively earning simply 10 pips a day.
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