I risked MACD Trading Strategy 100 TIMES Here’s What Happened... - Forex Day Trading
Doesn't work
No edge after realistic trading costs
- trades tested
- 1,888
- per trade after costs
- -1.03bp
- winners
- 42%
- years of data
- 14.7
MACD (12,26,9) crossover traded with the 200 EMA trend: buy when the MACD line crosses above the signal line below the zero line while price is above the 200 EMA; sell on the mirror setup below the 200 EMA. Stop beyond the pullback, target 1.5 times the risk in the 100-trade backtest.
The exact rules we tested
- 01Instrument: EURUSD | Signal timeframe: 30m | Direction: both
- 02LONG when: macd.line crosses above macd.signal
- 03SHORT when: macd.line crosses below macd.signal
- 04Long filter: (close > ema200) AND (macd.line < 0)
- 05Short filter: (close < ema200) AND (macd.line > 0)
- 06Entry: market at next bar open
- 07Stop: last swing (strength 3) +/- 0bp
- 08Target: 1.5R (risk-multiple of stop)