talak

Easy Swing trading ! part 2 ! MACD ! ! !

BITFINEX:BTCUSD   Bitcoin / Dollar
in the first part i told you ,how to use MA for easy swing trading (simplified version i probably make a part 3 to explain my real method)
now we do the same but with : MACD
so :
-when blue ligne crosse up red line >> buy
-when blue line crosse down red line >> sell
and ? that's all , easy peasy lemon squeezy :)

again it's a simplified version , personally i use the 4h graph . for the same periode, if you use 4 h ,the gain are double but you have to make 5 times more trade . just under an exemple with 1000 dollars :

Wallet : 1000 dollars
Buy : 8000 > <sell 17000 > gain : 112 % > 1120 dollar
W: 1000 + 1120 > 2120
B : 16400 > S 16400 > gain : 0 % > 0 dollar
W : 2120 + 0 > 2120 dollars
B : 8000 > S : 10000 > gain : 25 % > 530 dollars
W : 2120 + 530 > 2650 dollars
B: 6900 > S : 9300 > gain : 34 % > 501
W : 2650 +901 > 3551 dollars
start : 1000 dollars
end : 3551 dollars
gain: 255 % >> 2551 dollars

just under an exemple on a short period with 4 h graph (try to share you the graph in comment)

wallet : W
buy : B
sell : S
gain : G
dollar : d

W : 1000 dollars
B : 9500 > S : 11000 > G : 15% >150 d
W: 1000 + 150 > 1150
B : 9000 > S : 9200 > G : 2% > 23 d
W : 1150 + 23 > 1173 d
B : 8000 > S : 8000 > G : 0% > 0 d
W : 1173 + 0 > 1173 d
B : 7400 > S : 8900 < G : 20 % > 234 d
W : 1173 + 234 > 1407 d
B : 7000 > S : 7000 > G : 0% > 0 d
W : 1407 + 0 > 1407 d
B : 6700 > S : 6900 > G : 3 % > 42 d
W : 1407 + 42 > 1449 d
B : 6800 > S : 8000 > G : 17.5 % > 253 d
W : 1449 + 253 > 1702 d
B : 8000 > S : 8800 > G : 10 % > 170 d
W : 1702 + 170 > 1872 d
B : 8900 > S : 9300 > G : 4% > 74 d
W : 1872 + 74 > 1946 d
B : 9200 > S : 9200 > G : 0% > 0d
W : 1946 + 0 > 1946 d
B : 9000 > S : 9700 > G : 7% > 136
W : 1946 + 136 >>>>> 2082 d

Wallet : 1000 >>>2082 gain : 100 % >>1082 dollars

so as you can see lot of trade but better gain (in the same period with 1d chart only 2 trade and 600 dollars gain)

ps :as you can see now we are in a sell periode (same for 1d and 4 h ) and it 's not time to buy yet...

ps : if you want the third part with my own MA version (not simple one) and how use it with MACD , like and share please beacause if the two first part dont cumulate 50 like i will not do the part 3 because it take lot of time..

like if you aprecciate (and for the part 3) , thanks :)=
Commentaire:
Which indicator do you use for the thumbs :o
Répondre
This guide is very misleading. In a bullish or bearish market condition, like BTC before the crash on 12/16, this MACD buy/sell signal could work well given that the supertrend does not reverse often. However, when the price moves in sideways you won't be able to catch buy/sell signal at the right time because MACD lags the price action by a lot. This is going to result in loss.

For example, if you bought on 1/5 and sold on 1/8 it should have been a loss. Why do you not have that in your calculation? Also, why did you not buy and sell on (1/28, 1/29) and (3/22, 3/26)? You preferentially picked points in your favor. Man, if trading was this easy everybody would have made money. It can never happen because this is a zero-sum game.
+2 Répondre
Acel teenhcl
@teenhcl, you are right, its very missleading because of 3 main reasons:

1) MACD lags, like a lot.
2) He asumes that you use the stop loss at break even - so no loss, only wins.
3) He points the thumbs up sell signal at the "top" while MACD gives it way later
+1 Répondre
So based on this 4hr chart of ETH with MACD and MA it's definitely time to buy?
+1 Répondre
talak awemazeinc
@awemazeinc, in theory yes , but like i said before for 4h chart better to use with MA and maybe stochastic , thats why if you only use MACD you buy now at 9300 , i bought around 9000 ...
+1 Répondre
Thank you for taking the time to do this, it is appreciated. I hope to see part 3.
I am going to study on your method and try it on the 4 hour.
+1 Répondre
you think MACD alone can show the way price will go ? MACD is turning bullish in H4.actually i think MACD is a useless indicator. it has a lot of delay.thats right MACD in daily time frame is showing bearish signs but it can change with one daily candle.furthermore , MACD is turning bullish in weekly timeframe.
+1 Répondre
talak newtrader_201
@newtrader_201, like i said h4 is more difficult to use alone ...but if you use 1 D chart no problem :) i personnaly use h4 with MA for swing trading , for day trading it don't work 100 % that why i use MACD + stochastic rsi +rsi + MA +resitances and support + fibo :)
+1 Répondre
@talak, but you can use h4 just sometime you will have trade with 0 gain and maybe sometime loser trade but in long term if you use just macd h4 you win :) but if you use MACD + MA you win more :)
hope you understand what i said because my english is not good :)
+1 Répondre
@talak, i agree.i use MACD beside other indicators too.so you say that MACD is a good indicator in longer time frames but its not reliable in shorter time periods like H4 ?
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