MACD with 1D Stochastic Confirmation Reversal StrategyOverview
The MACD with 1D Stochastic Confirmation Reversal Strategy utilizes MACD indicator in conjunction with 1 day timeframe Stochastic indicators to obtain the high probability short-term trend reversal signals. The main idea is to wait until MACD line crosses up it’s signal line, at the same time Stochastic indicator on 1D time frame shall show the uptrend (will be discussed in methodology) and not to be in the oversold territory. Strategy works on time frames from 30 min to 4 hours and opens only long trades.
Unique Features
Dynamic stop-loss system: Instead of fixed stop-loss level strategy utilizes average true range (ATR) multiplied by user given number subtracted from the position entry price as a dynamic stop loss level.
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Higher time frame confirmation: Strategy utilizes 1D Stochastic to establish the major trend and confirm the local reversals with the higher probability.
Trailing take profit level: After reaching the trailing profit activation level scrip activate the trailing of long trade using EMA. More information in methodology.
Methodology
The strategy opens long trade when the following price met the conditions:
MACD line of MACD indicator shall cross over the signal line of MACD indicator.
1D time frame Stochastic’s K line shall be above the D line.
1D time frame Stochastic’s K line value shall be below 80 (not overbought)
When long trade is executed, strategy set the stop-loss level at the price ATR multiplied by user-given value below the entry price. This level is recalculated on every next candle close, adjusting to the current market volatility.
At the same time strategy set up the trailing stop validation level. When the price crosses the level equals entry price plus ATR multiplied by user-given value script starts to trail the price with EMA. If price closes below EMA long trade is closed. When the trailing starts, script prints the label “Trailing Activated”.
Strategy settings
In the inputs window user can setup the following strategy settings:
ATR Stop Loss (by default = 3.25, value multiplied by ATR to be subtracted from position entry price to setup stop loss)
ATR Trailing Profit Activation Level (by default = 4.25, value multiplied by ATR to be added to position entry price to setup trailing profit activation level)
Trailing EMA Length (by default = 20, period for EMA, when price reached trailing profit activation level EMA will stop out of position if price closes below it)
User can choose the optimal parameters during backtesting on certain price chart, in our example we use default settings.
Justification of Methodology
This strategy leverages 2 time frames analysis to have the high probability reversal setups on lower time frame in the direction of the 1D time frame trend. That’s why it’s recommended to use this strategy on 30 min – 4 hours time frames.
To have an approximation of 1D time frame trend strategy utilizes classical Stochastic indicator. The Stochastic Indicator is a momentum oscillator that compares a security's closing price to its price range over a specific period. It's used to identify overbought and oversold conditions. The indicator ranges from 0 to 100, with readings above 80 indicating overbought conditions and readings below 20 indicating oversold conditions.
It consists of two lines:
%K: The main line, calculated using the formula (CurrentClose−LowestLow)/(HighestHigh−LowestLow)×100 . Highest and lowest price taken for 14 periods.
%D: A smoothed moving average of %K, often used as a signal line.
Strategy logic assumes that on 1D time frame it’s uptrend in %K line is above the %D line. Moreover, we can consider long trade only in %K line is below 80. It means that in overbought state the long trade will not be opened due to higher probability of pullback or even major trend reversal. If these conditions are met we are going to our working (lower) time frame.
On the chosen time frame, we remind you that for correct work of this strategy you shall use 30min – 4h time frames, MACD line shall cross over it’s signal line. The MACD (Moving Average Convergence Divergence) is a popular momentum and trend-following indicator used in technical analysis. It helps traders identify changes in the strength, direction, momentum, and duration of a trend in a stock's price.
The MACD consists of three components:
MACD Line: This is the difference between a short-term Exponential Moving Average (EMA) and a long-term EMA, typically calculated as: MACD Line=12-period EMA−26-period
Signal Line: This is a 9-period EMA of the MACD Line, which helps to identify buy or sell signals. When the MACD Line crosses above the Signal Line, it can be a bullish signal (suggesting a buy); when it crosses below, it can be a bearish signal (suggesting a sell).
Histogram: The histogram shows the difference between the MACD Line and the Signal Line, visually representing the momentum of the trend. Positive histogram values indicate increasing bullish momentum, while negative values indicate increasing bearish momentum.
In our script we are interested in only MACD and signal lines. When MACD line crosses signal line there is a high chance that short-term trend reversed to the upside. We use this strategy on 45 min time frame.
ATR is used to adjust the strategy risk management to the current market volatility. If volatility is low, we don’t need the large stop loss to understand the there is a high probability that we made a mistake opening the trade. User can setup the settings ATR Stop Loss and ATR Trailing Profit Activation Level to realize his own risk to reward preferences, but the unique feature of a strategy is that after reaching trailing profit activation level strategy is trying to follow the trend until it is likely to be finished instead of using fixed risk management settings. It allows sometimes to be involved in the large movements.
Backtest Results
Operating window: Date range of backtests is 2023.01.01 - 2024.08.01. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 30%
Maximum Single Position Loss: -4.79%
Maximum Single Profit: +20.14%
Net Profit: +2361.33 USDT (+44.72%)
Total Trades: 123 (44.72% win rate)
Profit Factor: 1.623
Maximum Accumulated Loss: 695.80 USDT (-5.48%)
Average Profit per Trade: 19.20 USDT (+0.59%)
Average Trade Duration: 30 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe between 30 min and 4 hours and chart (optimal performance observed on 45 min BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Macdcross
Ta StrategyHello guys
This script follows traditional technical indicators
MACD, ADX, RSI and pivot points
If the price is above the resistance and the MACD has crossover ,and the RSI 14 is above 50
ADX is higher than 20, and DI+ is higher than DI-. This is a buy signal and vice versa for a sell signal
The script moves the stop loss to the entry price after the first target is reached
You can specify the quantity you want to sell when the price reaches the first target
There are also options like if you want the script to entry long or short, or both
you can reverse the strategy if it does not work well
If you want to inquire about any details, please let me know in the comments
Fast EMA above Slow EMA with MACD (by Coinrule)An exponential moving average ( EMA ) is a type of moving average (MA) that places a greater weight and significance on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average . An exponentially weighted moving average reacts more significantly to recent price changes than a simple moving average simple moving average ( SMA ), which applies an equal weight to all observations in the period.
Moving average convergence divergence ( MACD ) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period exponential moving average ( EMA ) from the 12-period EMA .
The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals. Traders may buy the coin when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line. Moving average convergence divergence ( MACD ) indicators can be interpreted in several ways, but the more common methods are crossovers, divergences, and rapid rises/falls.
The Strategy enters and closes the trade when the following conditions are met:
LONG
The MACD histogram turns bullish
EMA8 is greater than EMA26
EXIT
Price increases 3% trailing
Price decreases 1% trailing
This strategy is back-tested from 1 January 2022 to simulate how the strategy would work in a bear market and provides good returns.
Pairs that produce very strong results include AXSUSDT on the 5-minute timeframe. This short timeframe means that this strategy opens and closes trades regularly.
Additionally, the trailing stop loss and take profit conditions can also be changed to match your needs.
The strategy assumes each order is using 30% of the available coins to make the results more realistic and to simulate you only ran this strategy on 30% of your holdings. A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.
[DuDu95] SSL 4C MACD Laugerre RSI StrategyHello Guys! Nice to meet you all!
Before I start, my nickname has changed to 'DuDu95'!!
This is the Strategy introduced by youtube channel.
I made this based on the open source indicator by kevinmck100, vkno422, KivancOzbilgic. Thank you All!
### Entry Logic
1. Long Entry Logic
- close > SSL Hybrid baseline upper k (keltner channel)
- macd signal > 0 and current MACD value > previous MACD value
- Laguerre RSI < overbought Line.
2. short Entry Logic
- close < SSL Hybrid baseline lower k (keltner channel)
- macd signal < 0 and current MACD value < previous MACD value
- Laguerre RSI > overbought Line.
### Exit Logic
1. Long Exit Logic
- close < SSL Hybrid baseline lower k (keltner channel)
- macd signal < 0
2. short Entry Logic
- close > SSL Hybrid baseline upper k (keltner channel)
- macd signal > 0
### StopLoss
1. Can Choose Stop Loss Type: Percent, ATR, Previous Low / High.
2. Can Chosse inputs of each Stop Loss Type.
### Take Profit
1. Can set Risk Reward Ratio for Take Profit.
- To simplify backtest, I erased all other options except RR Ratio.
- You can add Take Profit Logic by adding options in the code.
2. Can set Take Profit Quantity.
### Risk Manangement
1. Can choose whether to use Risk Manangement Logic.
- This controls the Quantity of the Entry.
- e.g. If you want to take 3% risk per trade and stop loss price is 6% below the long entry price,
then 50% of your equity will be used for trade.
2. Can choose How much risk you would take per trade.
### Plot
1. Added Labels to check the data of entry / exit positions.
2. Changed and Added color different from the original one. (green: #02732A, red: #D92332, yellow: #F2E313)
MAPM-V1Greetings dear traders!
I would like to introduce you the script for testing the strategy by crossing two signal EMAs based on the MACD indicator.
In the strategy itself:
The entry is made as a percentage of the deposit by EMA crossings.
There are additional purchases, they are set from the entry price for a given percentage in the opposite direction of the transaction.
The distance in percentage from the entry price, on which the additional purchase is exposed, is set in the StepAddPurchases parameter.
The Martingale parameter increases the initially purchased amount of the base traded cryptocurrency in each additional purchase.
The essence of the strategy is to trade a large number of pairs in order to diversify risks and obtain a stable income.
It is desirable to enter each trading pair with a small percentage of the deposit.
The optimization result shows the trading result for the period of 5000 bars (the platform does not give more history) on 10% of the deposit for the first transaction, the addition will also take place on initially bought amount of base traded cryptocurrency, multiplied by the martingale parameter, raised by the number of addition.
The strategy will still be updated, so see you soon!
Short Swing Bearish MACD Cross (By Coinrule)This strategy is oriented towards shorting during downside moves, whilst ensuring the asset is trading in a higher timeframe downtrend, and exiting after further downside.
This script can work well on coins you are planning to hodl for long-term and works especially well whilst using an automated bot that can execute your trades for you. It allows you to hedge your investment by allocating a % of your coins to trade with, whilst not risking your entire holding. This mitigates unrealised losses from hodling as it provides additional cash from the profits made. You can then choose to hodl this cash, or use it to reinvest when the market reaches attractive buying levels. Alternatively, you can use this when trading contracts on futures markets where there is no need to already own the underlying asset prior to shorting it.
ENTRY
This script utilises the MACD indicator accompanied by the Exponential Moving Average (EMA) 450 to enter trades. The MACD is a trend following momentum indicator and provides identification of short-term trend direction. In this variation it utilises the 11-period as the fast and 26-period as the slow length EMAs, with signal smoothing set at 9.
The EMA 450 is used as additional confirmation to prevent the script from shorting when price is above this long-term moving average. Once price is above the EMA 450 the script will not open any shorts - preventing the rule from attempting to short uptrends. Due to this, this strategy is ideal for setting and forgetting.
The script will enter trades based on two conditions:
1) When the MACD signals a bearish cross. This occurs when the EMA 11 crosses below the EMA 26 within the MACD signalling the start of a potential downtrend.
2) Price has closed below the EMA 450. Price closing below this long-term EMA signals that the asset is in a sustained downtrend. Price breaking above this could indicate a bullish strength in which shorting would not be profitable.
EXIT
This script utilises a set take-profit and stop-loss from the entry of the trade. The take profit is set at 8% and the stop loss of 4%, providing a risk reward ratio of 2. This indicates the script will be profitable if it has a win ratio greater than 33%.
Take-Profit Exit: -8% price decrease from entry price.
OR
Stop-Loss Exit: +4% price increase from entry price.
Based on backtesting results across a selection of assets, the 45-minute and 1-hour timeframes are the best for this strategy.
The strategy assumes each order is using 30% of the available coins to make the results more realistic and to simulate you only ran this strategy on 30% of your holdings. A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.
The backtesting data was recorded from December 1st 2021, just as the market was beginning its downtrend. We therefore recommend analysing the market conditions prior to utilising this strategy as it operates best on weak coins during downtrends and bearish conditions, however the EMA 450 condition should mitigate entries during bullish market conditions.
MACD, RSI, & RVOL Strategy
This strategy combines the use of MACD (12, 26, 9), RSI (14, 30, 70), and RVOL (14) to create Long Buy and Sell signals. This works well with many different time intervals but was developed with 15-minute intervals in mind.
Using MACD as a reference, the strategy identifies when the MACD line crosses over (a factor in a buy signal) and under (a factor in a Sell signal) the Signal line. This shows a shift in positive (cross over) and negative (cross under) of a security.
Using the Relative Strength Index ( RSI ) as an indicator, the strategy notices when the velocity and magnitude of the directional price movements cross over the Oversold signal (30) and crosses under the Overbought signal (70) as a factor in creating a Buy and Sell signal.
Using Relative Volume (RVOL) as an indicator, the strategy calculates when the current volume has crossed over the 2x average volume indicator over a given period and is then used as a factor in creating a Buy signal. RVOL is also used when the change in volume crosses under a set RVOL number (in this strategy, it is set to a RVOL of 5).
RVOL = Current Volume / Average Volume over a certain period
This strategy indicates a Buy signal when 2/3 conditions are met:
- RSI Cross Over the Over Sold signal (default 30)
- MACD Cross Over of Signal ( MACD > Signal)
- RVOL Cross Over of 2 (RVOL > 2)
This strategy indicates a Sell signal when 2/3 conditions are met:
- RSI Cross Under the Over Bought signal (default 70)
- MACD Cross Under of Signal ( MACD < Signal)
- RVOL Cross Under 5 (RVOL < 5)
Enjoy and leave feedback!
MACD/EMA Long StrategyThis incredibly simple strategy uses a combination of the 20 EMA and bullish/bearish MACD crosses as a low risk method of getting in and out of markets.
Depending on whether the market is above or below the 200 SMA, the script determines if the market is in bullish or bearish territory. Above the 200 SMA, the script will ignore the 20 EMA as a buy condition and buy solely on the confirmation of a bullish MACD cross upon the close of a candle. In this bullish market, the script will only enable the sell condition if both the MACD is bearish AND a close below the 20 EMA occurs. This is to reduce the chances of the script selling prematurely in the event of a bearish MACD cross, if the market is still in overall bullish territory.
When the market is below the 200 SMA, the confirmation occurs in the opposite direction. The buy condition will only be met if both the MACD is bullish AND a close above the 20 EMA occurs. However, the sell condition ignores the 20 EMA and will sell solely on the confirmation of a bearish MACD cross upon the close of the candle.
This strategy can be used in both bullish and bearish markets. This conservative strategy will slightly underperform in a bull market, with the sell condition occasionally being met and then potentially buying back higher. However, it will successfully get you out of a turning market and automatically switch into a more 'risk-off' mentality during a bear market. This strategy is not recommended for sideways markets, as trading around the 20 EMA coupled with a relatively flat MACD profile can cause the strategy to buy the peaks and sell troughs easily.
MACD_Long_OnlyI created this indicator to calculate the gains that can be made purely by going long on the market. For exchanges without the ability to short, the standard MACD strategy is unable to accurately calculate the profit/loss from entering and exiting a position, as it includes profit/loss from actively shorting the market, which may either not be possible, or be undesirable for a specific asset.
Moving Average Convergence/Divergence MaCD BackestingMade this to backtest simple macd trading strategy, had to set it to open long and short positions because i'm not sure how you get it to calculate otherwise.
