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MACD + IBS Strategy

For you who have been with me for a while, know that I use the IBS (Internal Bar Strength) indicator in many of my strategies. That is the case also for this strategy, where I'm using it together with MACD.


Entry condition

  1. MACD[12, 26, 9] is declining 4 days in a row

  2. MACD[12, 26, 9] is below 0

  3. IBS of the current bar is below 0.14


Exit condition

  1. Sell the first day where the close is above yesterdays high


Here's the equity chart from Aug 1984 until today

It's a smooth equity curve with long periods with no major drawdowns


Statistics (Aug 1996 - today)

  • 79.29% winrate

  • 246 trades

  • 3056 points gained

  • 272 points max drawdown

  • 8.35% time in market

  • 3.63 Gain/Loss Ratio

  • Positive returns in 37 of 40years


I think it's worth noting that this strategy has barely any drawdown at all and that it's only 8.35% in market. Combine this swing strategy with some other strategies to leverage your capital when the strategy is not in market, and you will overachieve the index without doubt.



The ProRealTime™ code

defparam cumulateorders = false

entrycondition1 = MACD[12,26,9][0] < MACD[12,26,9][1] and MACD[12,26,9][1] < MACD[12,26,9][2] and MACD[12,26,9][2] < MACD[12,26,9][3] and MACD[12,26,9][3] < MACD[12,26,9][4]

entrycondition2 = MACD[12,26,9][0] < 0

entrycondition3 = (close - low) / (high - low) < 0.14

IF entrycondition1 and entrycondition2 and entrycondition3 THEN
	BUY 1 CONTRACTS AT MARKET
ENDIF

exitcodition = close[0] > high[1]

If LongOnMarket AND exitcodition THEN
	SELL AT MARKET
ENDIF

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