top of page

MACD crossover strategy with EMA200

The conditions of the strategy

  1. A buy signal is generated when the MACD crosses up over the MACD Signal line and the signal line and MACD are below the Zero line, and price closes above the 200 Exponential Moving Average.

  2. Stop loss for a buy signal is based on the most recent swing low and/or the 200 period Exponential Moving Average whichever is nearest the price when the trade is taken.

  3. A sell signal is generated when the MACD crosses under the MACD signal line and the signal line and MACD are above the MACD Zero line, and price closes below the 200 EMA.

  4. Stop loss for a sell signal is based on the most recent swing high and/or the 200 period Exponential Moving average whichever is nearest the price when the trade is taken.

  5. Take Profit can be based on either Option 1 an adjustable Risk/Reward ratio (Trailing Stop loss to be at 0) or Option 2 an adjustable Trailing Stop loss percentage (risk /reward ratio to be at 0).



The code

DEFPARAM CumulateOrders = False

MyMACD = MACDline[12,26,9](close)
MySLine = MACDSignal[12,26,9](close)
MyHis = MACD[12,26,9](close)
EMA200 = ExponentialAverage[200](close)

C1 = MyMACD Crosses Over MySLine AND MyMACD < 0 AND MySLine < 0
C2 = Close > EMA200
BuyCondition = C1 AND C2

IF BuyCondition THEN
Buy 1 Shares AT Market
SwingLow = lowest[10](low) // Assuming a 10-bar lookback for swing low
NearestLevel = Min(SwingLow, EMA200) // Selecting the nearest level to the current price

 slosslevel = Tradeprice - NearestLevel
set stop ploss slosslevel
set stop %trailing 0.5
ENDIF



C3 = MyMACD Crosses Under MySLine AND MyMACD > 0 AND MySLine > 0
C4 = Close < EMA200
SellCondition = C3 AND C4

IF SellCondition THEN
Sellshort 1 Shares AT Market
SwingHigh = highest[10](high) // Assuming a 10-bar lookback for swing high
NearestLevel = Max(SwingHigh, EMA200) // Selecting the nearest level to the current price
slosslevel = Tradeprice - NearestLevel
set stop ploss slosslevel
set stop %trailing 0.5
ENDIF

// Take Profit options
Option1RiskReward = 2 // Adjustable Risk/Reward ratio (e.g., 2 means 2:1)
Option2TrailStopPercent = 0.5 // Adjustable Trailing Stop loss percentage (e.g., 0.5%)
NearestStopLoss = 10 // minimum stop distance
TakeProfitOption1 = NearestLevel + (NearestLevel - NearestStopLoss) * Option1RiskReward

if (open < TakeProfitOption1 and close > TakeProfitOption1) or (open > TakeProfitOption1 and close < TakeProfitOption1) then
sell at market
exitshort at market
endif 



215 views0 comments

Recent Posts

See All

Comments