Most Effective Stochastic + RSI + MACD Trading Strategy (Proven 100x)
Loses money
No edge after realistic trading costs
- trades tested
- 1,557
- per trade after costs
- -1.96bp
- winners
- 40%
- years of data
- 14.8
Wait for both Stochastic lines to hit oversold (overbought for sells), confirm trend with RSI above (below) 50, then buy (sell) when the MACD line crosses above (below) its signal line, provided the Stochastic has not yet reached the opposite extreme. Stop beyond the nearest swing low/high, target 1.5x the stop, tested on EURUSD 30m.
The exact rules we tested
- 01Instrument: EURUSD | Signal timeframe: 30m | Direction: both
- 02LONG sequence: 1. [(st.k < 20) AND (st.d < 20)] just became true this bar THEN 2. (macd.line crosses above macd.signal) AND (NOT ([(st.k > 80) AND (st.d > 80)] on any of the last 20 bars)) (within 20 bars)
- 03SHORT sequence: 1. [(st.k > 80) AND (st.d > 80)] just became true this bar THEN 2. (macd.line crosses below macd.signal) AND (NOT ([(st.k < 20) AND (st.d < 20)] on any of the last 20 bars)) (within 20 bars)
- 04Long filter: rsi14 > 50
- 05Short filter: rsi14 < 50
- 06Entry: market at next bar open
- 07Stop: last swing (strength 3) +/- 0bp
- 08Target: 1.5R (risk-multiple of stop)