MACD Simple Cross System
I have had this idea in my head for quite some time and wanted to share it with you.
I would like to ask you to give me your feedback and if someone knows how to create EA, then it would be great to speed up the testing.
The only indicator I am working with is MACD (standard setting 12,26,9). Just copy it to your indicators folder. I am using this with H4 timeframe.
BUY:
We are looking for a buy signal when both signal and main MACD lines are below 0. We enter the trade when the histogram turns to green color.
Add-on BUY:
If after the valid buy (both lines below 0, histogram turns green) the histogram turns to red and then turns to green again, you add another buy position.
From left to right:
Buy, Add-on Buy, Sell, Buy
SELL:
We are looking for a sell signal when both signal and main MACD lines are above 0. We enter the trade when the histogram turns to red color.
Add-on SELL:
If after the valid sell (both lines above 0, histogram turns red) the histogram turns to green and then turns to red again, you add another sell position.
From left to right:
Sell, Buy, Sell, Add-on Sell, Add-on Sell
EXITS:
Exit all open positions when you receive an opposite signal. This means you will always have an open position(s) – either buy or sell.
Here are some screenshots from MACD alone with signals marked, price levels with signals marked, and a combination of both.
I used this system a few years back on my live account and I managed to grow my account from approx 5,000 CZK to about 7,500 CZK (200$ to 300$ approx.), but then lost most of it as I missed the reverse signal, and then instead of closing in a small loss, I let the trades run against me until I get another signal in the same direction. Unfortunately, this took longer than I thought and so I closed my trades with big loss…Had I waited a few more days, the market moved in “my” direction and I would have been close to 300% gain, but that’s another story
