ProRealAlgos Stochastic MACD Strategy
A MACD that reads the same on an $18 stock and a $3,180 one. Because it is bounded, oversold actually means oversold, and the entry rules finally hold still long enough to be tested.
50 copies. After that it goes back behind the licence.
Get the strategyThe indicator, the three tested setups and a walkthrough video. One email, no card, nothing to cancel.
Real Amazon daily bars, split adjusted, 27 January 2016 to 14 August 2018, with setup 1 trading them: the same length 45 oscillator, 200 EMA filter, 4 × ATR(14) stop and 2R target that are in the pack.
The three ways in
One oscillator, three different trades
Every tested setup picks one of these and nothing else changes.
Oversold reversal
The line has been below minus ten, then crosses up through its signal line. You are buying the turn, not the fall. This is what setup 2 trades.
Zero line cross
The line crosses above zero: the fast average has climbed higher in the range than the slow one. The simplest of the three to read off a chart.
Momentum continuation
A cross up through the signal line while already above zero. You are adding to strength rather than catching a dip. Setups 1 and 3 trade this, and so does the chart above.
The rules
Three choices and nothing else
Pick one option from each block and you have a complete system.
Oversold reversal
Crosses up through the signal line, having been below −10 on the bar before.
Zero line cross
Crosses up through zero, with nothing else asked of it.
Momentum continuation
Crosses up through the signal line while already above zero.
Take everything
Every signal the entry rule gives you, with no second opinion.
EMA 200, rising
Price above the 200 EMA, and that EMA higher than it was 10 bars ago.
ADX(14) over 20
The market is trending rather than chopping sideways.
The same two setups tested with the filter switched off scored almost identically. The edge is in the signal, not the filter.
1.5, 2.5 or 4 × ATR
Below the entry, so it widens when the market is wild and tightens when it is calm.
Twice the stop
Take profit at double the stop distance and nothing else closes the trade.
Three times the stop
Hit far less often, and worth three losers every time it lands.
No target at all
The stop follows the price at the ATR distance until it is caught.
What survived
The three setups worth running
These three cleared every robustness check: enough trades, profitable in both halves of the history, profitable in the last 12 months, and neighbouring parameter values profitable too. Figures below are ProRealTime on IG live account data, a flat $10,000 per trade, spreads included, from each setup's first trade to 3 November 2026.
Setup 1 · AMZN daily
+$23,417Momentum continuation, with the trend
- Amazon is above its 200 day EMA and that EMA is rising.
- The Stochastic MACD (length 45) is above zero and crosses up through its signal line. Buy at the next open.
- Stop 4 × ATR below the entry, target 8 × ATR above it. Nothing else closes the trade.
Setup 2 · AMZN 1h
+$34,703Buy the oversold dip in a trending market
- The ADX(14) is above 20, so there is a trend to dip into.
- The Stochastic MACD (length 60) has been below −10 and now crosses up through its signal line. Buy.
- Stop 4 × ATR below, target 12 × ATR above. Positions are held overnight and over weekends.
Setup 3 · AAPL 4h
+$7,185Ride it out with a trailing stop
- The ADX(14) is above 20.
- The Stochastic MACD (length 30) is above zero and crosses up through its signal line. Buy.
- The stop trails 1.5 × ATR behind the price. No target, the trade runs until the stop catches it.
- The indicator. The Stochastic MACD itself, with the histogram, the signal line and the ±10 bands, ready to drop on a chart.
- The three setups. Setups 1, 2 and 3 as complete ProRealTime strategies, with the exact parameters that were tested.
- A video walkthrough. Me on a live chart, showing how I read the oscillator and where I would and would not take the trade.
- Every parameter exposed. Length, entry type, filter, stop multiple and exit are all variables at the top of the file, so you can run your own grid.
Your cart
The Stochastic MACD strategy
- Indicator, three setups, walkthroughOne off, yours to keep $599.00
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