OPEN-SOURCE SCRIPT
Dual MACD Strategy [Js.k]
Strategy Overview
The Dual MACD Strategy leverages two MACD indicators with different parameters to generate buy and sell signals. By combining the trend-following properties of MACD with specific entry/exit criteria, this strategy aims to capture significant price movements while effectively managing risk.
Entry and Exit Conditions
Long Entry: A buy signal is triggered when:
The histogram of MACD1 crosses above zero.
The histogram of MACD2 is positive and rising.
Short Entry: A sell signal is triggered when:
The histogram of MACD1 crosses below zero.
The histogram of MACD2 is negative and declining.
Risk Management
Stop Loss and Take Profit:
Stop Loss is set at 1% below the entry price for long positions and 1% above the entry price for short positions.
Take Profit is set at 1.5% above the entry price for long positions and 1.5% below the entry price for short positions.
Position Sizing: Each trade risks a maximum of 10% of account equity, keeping potential losses manageable and in line with standard trading practices.
Backtesting Results
The strategy is tested on BTCUSDT with a time frame of 1 hour, resulting in 200+ trades.
The initial capital for backtesting is set to $10,000, with a realistic commission of 0.04% and a slippage of 2 ticks.
Conclusion
This strategy is inspired by Dreadblitz's Double MACD Buy and Sell, as well as some YouTube videos. My purpose in redeveloping them into this strategy is to validate the practicality of the Double MACD. After multiple modifications, this is the final version. I believe its profitability is limited and may lead to losses; please do not use this strategy for live trading.
The Dual MACD Strategy leverages two MACD indicators with different parameters to generate buy and sell signals. By combining the trend-following properties of MACD with specific entry/exit criteria, this strategy aims to capture significant price movements while effectively managing risk.
Entry and Exit Conditions
Long Entry: A buy signal is triggered when:
The histogram of MACD1 crosses above zero.
The histogram of MACD2 is positive and rising.
Short Entry: A sell signal is triggered when:
The histogram of MACD1 crosses below zero.
The histogram of MACD2 is negative and declining.
Risk Management
Stop Loss and Take Profit:
Stop Loss is set at 1% below the entry price for long positions and 1% above the entry price for short positions.
Take Profit is set at 1.5% above the entry price for long positions and 1.5% below the entry price for short positions.
Position Sizing: Each trade risks a maximum of 10% of account equity, keeping potential losses manageable and in line with standard trading practices.
Backtesting Results
The strategy is tested on BTCUSDT with a time frame of 1 hour, resulting in 200+ trades.
The initial capital for backtesting is set to $10,000, with a realistic commission of 0.04% and a slippage of 2 ticks.
Conclusion
This strategy is inspired by Dreadblitz's Double MACD Buy and Sell, as well as some YouTube videos. My purpose in redeveloping them into this strategy is to validate the practicality of the Double MACD. After multiple modifications, this is the final version. I believe its profitability is limited and may lead to losses; please do not use this strategy for live trading.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.