Profit 81.5% MACD EMA Strategy Backtest 250 times. How to backtest? Does your strategy works?

Published on February 8, 2022

Trending overview highly rated Forex Trading Softwa, Forex Trading Robots, Trend Detection in Forex Trading, and Macd Crossover Strategy, Profit 81.5% MACD EMA Strategy Backtest 250 times. How to backtest? Does your strategy works?.

Profit 81.5% MACD EMA Strategy Backtest 250 times. How to backtest? Does your strategy works?

This time I would like to share with you the use of the MACD + EMA strategy to do a backtest of Euro against the US dollar.The following are the basic situation of the test:
The test time is from May 1, 2017, to June 21, 2018.
Lasted 416 days, of which 298 were trading days.
251 transactions were made in a 30-minute time frame during the period.
On average, there are 8 trading opportunities per week,
The principal is 10,000 dollars,
The profit-loss ratio is 1.5 to 1, and each loss is 1% of the principal.
So the profit and loss are fixed amounts,
You earn 150 dollars once you win and lose 100 dollars once you lose.
The cost of forex trading is low,
If you use it for stock trading, you may need to consider the cost of transactions.

This is a trend trading strategy, the rules are quite simple.
We use EMA 200 as filter to determine the trend,
When the price is higher than EMA 200, we only go long position,
When the price is lower than EMA 200, we only go short position.
In other words when the price is higher than EMA 200,
and the MACD line crosses above the signal line, we buy.
When the price is lower than EMA 200 and the MACD line crosses under the signal line, we sell short.
The exit strategy is set according to the profit-loss ratio of 1.5 to 1.
Each loss is 1% of the principal.
So, find an obvious support to stop-loss,
It should be adjusted according to the situation, such as the swing low of the previous volatility.
Then, calculate the point of taking profit based on the distance between the opening position and the stop loss position.
If the stop loss is 100 points, then the take profit is 150 points.
It should be noted that although the profit-loss ratio is 1.5 to 1, the volatility is different each time.
Therefore, the profit and loss should be set as a fixed amount.
When opening a position, you need to calculate the size to keep the profit and loss the same every time.

Macd Crossover Strategy

Macd Crossover Strategy, Profit 81.5% MACD EMA Strategy Backtest 250 times. How to backtest? Does your strategy works?.

How To Earn Money Swing By Trading Stocks – Swing Trading Strategies

The very best method to time your entry is to search for the break on the cost level. The only thumb-down in this service is that it is extremely risky. A lot of traders like to wait for the pullback however they never ever get in.

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That is, naturally, up until I got so stressed out attempting to catch the reversal and I would quit. Identify when to exit: you should also define the exit point in you forex trading system.

Pattern trading is definitely my favorite kind of trading. When the market trends, you can make a load of cash in simply an extremely brief time. However, most of the time the marketplace isn’t trending. In some cases it merely varies back and forth. Does this mean you need to simply stroll away? Hardly! You can generate income in a ranging market, and here is how.

Trade the odds and this implies cost momentum need to support your view and validate the trade before you enter. 2 fantastic momentum signs are – the Stochastic Trading and the Relative Strength Index – look them up and utilize them.

Look for divergences, it tells you that the cost is going to reverse. If price makes a brand-new high and at the exact same time that the stochastic makes lower high. This is called a “bearish divergence”. The “bullish divergence” is when the cost makes a brand-new low while the stochastic makes greater low.

A number of traders simply await the time when the price will reach near the point they are expecting and believe that at that point of time they will go into the trade and wish for Stochastic Trading much better levels of hold.Never ever anticipate anything or think anything since it will result in a quick eliminate and the market will take off your equity and will not offer you any rewards.

If you saw our previous report you will see we banked a great brief profit in the Pound and now were Stochastic Trading looking at it from the long side in line with the longer term pattern, with the exact same approach.

Technical Analysis is based upon the Dow Theory. Dow theory in nutshell says that you can use the past price action to predict the future cost action. These rates are expected to incorporate all the publicly available details about that market.

Wait for the indications to indicate the bears are taking control, via the stochastic and RSI and keep in mind the bulls just take charge above January’s highs.

They do this by getting the best answers to these million dollar questions. Forex traders make money by hypothesizing market movements. When rates struck target take your profit in and wait for the next set up.

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